4 Family in Ridgewood/Queens, NY

[Jon Arteaga]

Hi All,

I'm looking to help my cousins out. Their parents bought a 4 family house in Ridgewood in the early 90s and its value has increased tremendously. Its valued at 1.2 million dollars based on the recently sold comparisons and cash offers they've received. The house was built in the 1920s and needs some updating on the inside (its last been updated in the 80s). Rents are low due to close relationships with the tenants and are currently $1400, $1300, $1600 and the owner occupied (parents). The house has 20k left to be paid off and one of the cousins works in Times Square and is looking to occupy one of the apartments. A full renovation would cost easily $250k. Rents for three nearby homes are $2500-$2700 for a 2 bedroom, 1 bath apartment. In my opinion, they should leave the house as is and try to maximize its rent potential ($1800 each apartment?) with the existing condition or more cosmetic improvements. The surrounding apartments had major improvements that maximized the space (larger windows, removing hallways and changing entrance, decks, cameras etc)  and created a very nice space. In my opinion, they should take out a home equity loan and buy another house in the area that is a rental and let it bring some cashflow. All opinions and options are welcomed... I personally am in favor of leaving the building as is with some improvements (Kitchen/Bath/Floors), investing maybe $80k into the house and using the rest of the money to buy another property nearby.