Top Five Best Buys In Bedstuy For Around A Cool Mil
Think you missed the chance at a million dollar Brooklyn townhouse? These BedStuy deals may make you reconsider.
Do or die BedStuy used to be the old moniker. Now it might as well be “Buy Or Cry”. With sales prices and rents on an ever upward trajectory, managing to become a home owner in the once gritty neighborhood is like running behind a locomotive once it’s already left the station, and jumping on the back of the caboose at the last minute. But here’s great news: Agorafy Team asked our investment experts to look into townhouses currently listed for sale on our platform, and, as it turns out, if you manage to get a mortgage, the combination of high rents and low interest rates, you could still come out on top.
Here are five Bedford Stuyvesant deals that will you take you from struggling renter to investment mentor.
213 MacDonough St—Price: $999,999
Forgetting the current rent roll and interior finishes for a moment. Getting a 4-story, 3-unit brownstone in a landmarked (Stuyvesant Heights) neighborhood for under a million these days should get your attention. Fully finished town homes are fetching over $2 million in BedStuy and Crown Heights. So what’s the catch?
Well, it’s currently being used as an illegal eight-unit SRO (Single Room Occupancy) which could mean changing around gas lines, eliminating kitchens and removing tenants. As it currently stands it won’t qualify for a conventional mortgage. However, that said, many of the interior finishes look good. An all cash buyer may be able to get a conditional C/O provided they make the required changes within a certain time frame after closing. If the city requires the changes are done before closing on the buyer’s dime, all bets are off. If your attorney can work something out, this could turn into a real winner.
72 Mother Gaston Boulevard—Price: $1,195,000
This is closer to East New York than BedStuy (it’s actually in Ocean Hill), so be careful where you choose to get your comps from. This has two decently renovated two bedroom apartments (stainless steel appliances, hardwood floors, granite countertops etc.) which should easily fetch $2,000 apiece a today’s rates if not more as there is a well finished garden apartment. It also has a commercial space you can rent out. With 20 percent down, you’ll have a mortgage payment of around $4,000/month. That should be covered by the residential rental alone, not including what the store front gets. This could be a great deal if a market rate rent is being charged.
38 Decatur St—Price $1,999,000
Judging from the available photos this duplex is a “pre-hab”. The walls have been painted and the hardwood floors have been left unfinished. Expect to pay $5,000/floor (on the low end) to have them sanded, stained and polyurethaned. Could be much cheaper if you did the staining and poly-ing with a neighborhood handyman. One of the bathrooms has been finished to a high level but there are no photos of the kitchens which would imply they need a full overhaul. At $1.2 million as a pure investment, it’s not a money maker—but as an owner occupant with a decent down payment and additional rental income, it could work out in the long term.
217 Putman Avenue—Price $1,225,000
There’s no doubt that this single family property has been renovated to a high degree. It’s got the wow factor with gleaming new kitchens, floors and bathrooms. The sales pitch here is comparing it to three bedroom condos in the trendier parts of Brooklyn (Williamsburg, Fort Green etc.) which would be at a similar price point. The downside—it’s a narrow building and despite the renovation it’s a bit pricey for the square footage. But, if you’re looking for a place to park your cash, put your head down and not deal with any construction, there’s no doubt that the market will catch up with this one sooner rather than later.
390 Bainbridge St—Price $1,250,000
390 Bainbridge is a decent block in a decent part of BedStuy. It’s been well renovated with all the bells and whistles and is market rental ready/move in condition. For the neighborhood and the finishes, it’s well priced. A good deal for an owner occupied buyer who has a decent down payment and wants some extra rental income to offset the mortgage. However, it’s worth examining exactly how many legal bedrooms are in the property as the floor plans don’t seem to gel with the five bedroom description. This could seriously affect rental income.
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