Flatbush deal analysis

[William Gan]

Hi all, 

I'm looking at buying a 3 bed condo unit in Flatbush (converting from 2), and the numbers seem ok given that I think I'm being conservative on appreciation and rent increases. However, I'm brand new to all of this, so appreciate any calibration on what my numbers should actually be. 

Key questions for me are:

• Are any of my expenses majorly off? Esp. not sure what's a normal amount for insurance (building built b/w World War 1 and 2), maintenance & repair. I assume water/sewer/common electric/deferred CapEx all bundled in common charges.
• What are people generally looking for IRR-wise? I know CoCR is more or less moot for NYC, but IRR takes into account appreciation as well...and at my current (albeit conservative) assumptions, I'm only getting 7-8%. Barely better than throwing the money into an index fund long-term...except I get more control/upside here.
• What are the best ways to gauge condo management health? Major risk seems to be a large increase in common charges - are folks asking for board reserve amounts pre-offer? 
• What sources are you guys using to get more comfortable with area growth assumptions? Right now - it just feels like Flatbush is purely banking on spill-over from PLG, vs. any major development driver (e.g. Sunnyside Yards, Looking specifically for any news/info sources folks recommend subscribing to (or if it's just their experienced realtor feeding them info, that's good to know too)

Sales comps-wise, it's sitting at low $500s per sqft vs. some freshly built condos at high-$680s-$780s, which seems like a good deal. Pulling recent rental comps, 2 beds sit at around $2100, 3 beds go for ~$2500-$2700. I figure conversion would put me somewhere in the middle. 

Thoughts? @Adam K - I see you post about Brooklyn a lot, so would especially value your thoughts :)

Some other notes that may be helpful:
-Live and rent in Brooklyn Heights, so anything that reduces my net burn is good (totally fine with roommates!)
-Would self-manage the property for the 1st 2 years, and then possibly hand over to a PM (assume vacancy, PM 0% 1st 2 years)
-Property is a pre-war walkup with some basic value-add updates 

William