NYC co-op: To sell or not to sell

[Ashley Payne]

Hi everyone! I’m seeking advice from any investors who have dealt with the pain of owning a co-op in NYC. I bought my co-op in the Concourse area of the Bronx in 2019. The area was showing so many of those signs we’ve seen time and time again that a neighborhood will one of those you wish you invested in on the ground floor.
I lived there for three years and I’m now coming up on my second year of renting it out. My building has the 2 out of every 5 year rental rule. I realllllly don’t want to sell because I don’t think it has had enough time to appreciate, but I also don’t want to waste thousands of dollars every year in the likely event that my co-op board will not allow me to keep renting out my place. Also, the maintenance has gone up so much I’m down to only $89 cashflow each month.  Here are the facts/numbers:

2019 purchase price: $212,000

Outstanding loan: $153,000

Co-op: 1bed, 1bath, 774sq ft. Renovated kitchen and bath. All the pre-war charm. 

Has anyone been able to get around the subletting restrictions?

Should I have a family member live there at a loss each month? (Maybe - $500)

Would I be better off selling and investing the funds elsewhere? 

Hold?

Any advice is appreciated! Thank you! 

[Andrew Jennings Freerks]

@Ashley Payne great post.  Coops can be difficult and I understand what you mean when you talk about the appreciation, as I bought a condo in Mott Haven and appreciation has been slower than I hoped (thanks Covid).  Could you claim a hardship to get the coop board to allow you to rent for longer than the 2 years?  Otherwise, I assume you are seeing about 5-7% appreciation annually, so if you can sell and beat that return elsewhere, then it makes sense IMO.

How much do you anticipate your rental would go for?  Knowing the area, I think you should be north of $2,200.