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Updated over 10 years ago on . Most recent reply

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75
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16
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Roy Assaf
  • Investor
  • New York City, NY
16
Votes |
75
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Multi Family House in Brooklyn for $1,300,000 - Give an offer?

Roy Assaf
  • Investor
  • New York City, NY
Posted

Question from a newbie in NYC - 

My partner and I are starting in the New York City market and are looking for some wholesale deals. We came across this property and we would love hear some feedback.

It's a multi family (we saw the place, it's a two family house but can be converted to three) - 9 beds, 3 baths, 4,040 SF, two car garage, good neighborhood.
I don't have experience with constructions but the house definitely needs some work, especially the basement.

The district zoning is R6, so maybe there is a possibility to build up.

The asking price is $1,300,000 and it was last sold in May 2014 for $900,000.
Looks like another investor who is trying to wholesale.

It was a bit hard to come up with the comps but it looks like the house can be sold ARV for about $1,400,000.

My partner and I don't have the experience with rehab the place (unless we team up with a rehabber) but we are considering to give them an offer of $950,000 and try to wholesale if we get it.

Any feedback will be greatly appreciated, thank you!

Most Popular Reply

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Will Barnard
  • Developer
  • Santa Clarita, CA
10,945
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15,747
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Will Barnard
  • Developer
  • Santa Clarita, CA
ModeratorReplied

First off, before you just toss out a blind offer, you need a plan and to complete some due diligence. If someone just bought it for $900k, and less than 2 months later they are selling for $1.3M, I would want to know what repairs if any were made to justify an increase in value of $400k!!!!

I am betting they had closing costs and also have holding costs, so I doubt $950k would even make them whole. That being said, the owner could be a rookie and may have made a mistake and could be forced into cutting some losses, you don't know until you do some digging.

As yo the plan, do you have a buyers list of qualified cash buyers for this area who are looking for multi family? If not, locking up a deal, especially a marginal one, could land you in the hot seat. If the zoning supports more doors and the numbers pencil, then that could be the upside, you need to complete some DD here BEFORE making your offer. This is just a few thoughts I have with the info provided.

Hope this was helpful, as always, I am a dedicated BP member posting while on vacation in Peru. :)

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