All Forum Posts by: Ed Nunez

Thank you all for the replies. Unfortunately, none of the units will be delivered vacant, but the numbers aren't bad. The NOI is just under $40k with an asking price of $800k in the Bronx. I'm not hoping for significant increases, but wouldn't someone be willing to pay an additional $50-100 per month for $2-4000 of improvements or updates? I would!

Either way, Id be open to waiting for any tenants to vacate to do $8000 improvements where I can then raise rents by $200 per month, which would still be below market. There is a similar property that is priced 20% higher and the Bronx seems to be appreciating a little quicker than other boroughs given that others have too much activity. 

Reconfiguring the building into 5 units is an interesting idea, but that may be an even more challenging process. I'm okay with a buy and hold strategy doing occasional improvements when vacancies arise. 

I am evaluating a property with 6 rent stabilized units in the Bronx. The upside is in potentially raising rents and I'm wondering if anyone has done this. Based on my research (http://www.nyshcr.org/Rent/factsheets/orafac26.pdf) rents can be increased through Individual Apartment Improvements (IAI). There are certain criteria such as new floors, appliances, etc., but I am looking for some clarification. I understand that rents can be increased by 1/40th of the renovation cost. Does that increase apply to the monthly or annual rent? Also, has anyone tried this and How was the experience? Did you still require approval from the city? If there is a tenant in place, increasing the rent can only be done with tenants consent, have you found tenants to be reasonable and cooperative? 

I'm sure there is a discussion on this topic but can't find it. I would appreciate any insight or link to an existing discussion on this topic. 

Thank you