All Forum Posts by: Aaron Williamson

Curious to know if anyone has experience converting 3-4 family into condos and the feasibility of such ventures.

I often see condos in brownstones for sale and wonder if embarking on all the change of title gymnastics makes sense. Is it not economically viable or do people just put this in the too hard basket when faced with hiring attorneys, expeditors, architects etc in NYC.

I'm interested to hear from anyone that has experience with real estate law experts in NYC that have voiced their opinion. I'm somewhat familiar with the June lanlord legislation updates but it seems this may only be applicable when embarking on the 6+ unit conversions up to mega conversions ala Jared Kushner style.

I'm interested to hear people's thoughts on why the recent drop in multi res. prices and if this has anything to do with it.

Thanks

The beginning of December is slow, xmas and new year are jackpot times. January and February are dead slow. If you compare what you charge to a standard NYC hotel it's a no brainer for tourists.

Depending on your location, the rest of the year should be pretty steady. When i was involved in the east village one could charge up to 180-190 a night for a studio but when it was slow around 110 just to get your occupancy rate up in the slow months. 

The risk isn't if you'll make money, you will. The headaches come in other forms. Shoot me a message and i'll be happy to share my experiences.

Nicholas,

Sounds like a fun project, brownstones can run anywhere from 200 to 450+ a square foot for a rehab. Sure you can get by on the low end but with those great old buildings you may want to consider accentuating the original features, putting in a decent HVAC, redoing the plumbing and boilers, insulation and maybe even facade work. You'll spend alot but there is definitely a market for high end rentals in the nicer areas like Clinton hill etc. 

is this building in a landmark area and does the C of O currently state a legal 4 family? Changing the occupancy is a major pain and a lengthy process that will add some hefty filing fees.

good luck, I hope it goes well! 

@jaysen medhurst  thanks for the tip, my next step is definitely engaging with a lender.

Primarily in Bushwick and Ridgewood areas im looking at going all in at around 1.1M to 1.25M max. Depending on a number of varables. With a 5% cap. I'm happy to put down 25% and cover the renovations with cash. I'm looking at banking on appreciation rather than a cap rate here. I'm happy around 4-5% with fingers crossed the property value will increase substantially in 6-8 years.

im also looking at bigger lot sizes, corner lots and proximity to wide streets to maximize potential FAR if I wish to syndicate and develop the land further down the track.

@Abel Curiel thanks for the tips, I hadn't considered those areas but will absolutely check them out. I'll also start looking at agents, is this the best way to  find off market deals? I'm sure that what you see in all the big sites are just a fraction of what's available.

thanks to you both 

Sounds like best case scenario you'd just be taking the slab on grade down to the top of existing footing. I'd consult a structural engineer not and architect, you'll need a few test pits (borings) that the engineer can analyse then design a new slab and stamp and seal for your filing. The architect would just act as an intermediate as they're not sub grade experts. I'm sure your architect has a good structural engineer they can recommend.

worst case scenario you'd have to underpin your neighbors footing, expensive but it depends how much you want the space. 

im an architect that's worked very closely with structural engineers on this type of thing in nyc. It's expensive -getting the equipment in the basement, shoring the existing structure, removal of waste, filings etc they all add up but if you can then sell the space as occupiable you've probably added another couple of 100k to the value of your property.

let me know how you go, I'm happy to answer any questions.

Hey Aaron, another Aaron and architect here. I'm looking to do something similar to what you did but in NYC. Good luck! I'll be following your posts.

Hi,

i'm in NYC and completely new to multi family investing. I have however worked for clients that have successfully bought and renovated multi family houses in the Brooklyn area. I've definitely been on the wrong side of the deal, I've gotten a fee but the greater profits come from coordinating the whole deal.

im an experienced architect so due diligence, navigating permits, contractors and construction I can handle but I'm a complete newbie when it comes to the best way to finance. 

id be looking at finding a good deal in a sagging market, completing a facelift renovation on all units then occupying one unit. 

i have an investor that will partner up in the venture with a legal background and we've narrowed down area, lot size, price point etc. 

my long winded way of asking a simple question is where do I start with obtaining a loan for financing? I've researched FHA etc., I'd love to hear from others who've been in the same position and what they've done before I jump into the arms of a mortgage broker.

i have great credit and earn a decent wage but from the preliminary research I've done it's a bit of a minefield out there and NYC is a beast in it's own right. Any help for this rookie would be appreciated.

thanks in advance