NYC Co-op: Sell or Hold?

[Ericka G.]

I received an unsolicited offer to buy an apt that I own in upper manhattan (below 125th street). My unit wasn't on the market - a broker who lives in my bldg approached me with deal.  I change my mind daily on whether to sell or not.  Pls take a look at the numbers and let me know what you think.

My Purchase Price: $100k in 2005.  2bd/1ba,1000sqft unit, Doorman bldg across from park, short walk to to 2/3, Metro North, 4/5/6.  laundry, gated parking, courtyard. Former HDFC/HPD Bldg zoned for middle income built in late 90s. I love the apt and location.

Current mortgage balance: $52k.  Total monthly expenses: ~$1600 

Rent rev: $2500   (net: $900/mos)

Current offer: $400k, no inspection contingency.  The buyer has been verified.  

The dilemma:  HDFC/HPD income restrictions keep the prices low (for Manhattan) in my bldg. Those income caps will expire in 6-13 years.  

The co-op does NOT allow subletting, but I've had a grudging "family/roommate" pass since 2007. A lawyer sent me a cease letter in 2015 but I argued and they backed down quickly.  My cousin/roomie/tenant is moving out in August - not sure if I'll be able to move someone else in without trouble.  The seller I purchased from had $40k in co-op fines for subletting her place.

I could sell now and profit, but I sense that if I hold out until the income restrictions expire, the unit could be worth MUCH more (~$1mil wishful thinking?). I have a couple of solid deals pending where the cash would be useful.  

Do you think it is worth the risk to try to move someone else in/potential legal action/hold OR should I cash out now?  When I run the numbers, it seems like I should HOLD but it is hard to quantify all the variables that could go wrong IF the co-op board decides to come after me.  The stress of potentially having to duck/fight them for another 13 yrs makes me lean towards selling. Thoughts?