All Forum Posts by: Matt Lane

@Tiffany Cunningham How did you come up with the comps?  Are you simply using zillows value are did you pull several similar properties in a close radius and compare sold prices?

I've done a few properties in the bronx so i'm familiar with the market but the numbers you're throwing around are a bit all over the place.

Feel free to private message me if you have any questions as i would be a cash buyer if the numbers are right

Hi @Brian Kehoe

We are experienced developers and have done just that.  Assuming you have the proper zoning and lot dimensions it is definitely possible however not the simplest process for a novice to take on by themselves.  Navigating NYC building regulations and code enforcement exhausting and very frustrating especially if you plan to GC your build.  If you have no experience building then i would hire an experience builder/general contractor to do the job for you, this will save you a lot of aggravation and frustration however it will cost you more.

A few things to consider

- How do you intend to pay for the development?  Do you have the money or are you going to take out a construction loan?  If you're taking out a construction loan you will definitely need to go with an experienced GC

- Expect the subdivision, plan approval and development process to realistically take 18-24 months.  There will be others who will tell you that it will be shorter but DOB is very busy and moving very slow with permits and approvals even when using an expediter.

- Have you considered subdividing the land and selling it to an experienced developer?  Thus us a faster way to make a profit and will cost less money, time and aggravation for you

Hope i was helpful, feel free to message me if you have any questions

Hey @Evan Watts

Congrats on taking the plunge, thats the hardest step and welcome to BP!

thanks @Darren Sager!

@Matthew Spiegel I would be interested in that as well if someone were to organize it

@Jayson Greenblatt I agree, you have every reason to be concerned about that and the apt will rent for less for sure once the potential tenant finds out its electric heating.  I would look into the cost of converting it to oil (since you said there is not gas on the block) and build that into your offer price this way you can rent the apts for market rate.

My comments above were in regard to Francisco's ability to rent the 3 bed for 1700 plus utilities 

Best of luck

@Hakim Mitchell Me and my partners are active investors in in the same market.  Send me an email directly at EricLaneProp@ gmail.com so we can arrange for a time to speak and see if we can help each other.

In the mean time, if you have any other questions feel free to ask and i'll try my best to help

@Chris Rosenberg water isn't separately metered so that's the one utility the landlord absords but gas and electric general are separate if its a legal multi fam.  That being said, the landlord should take that into consideration when deciding rent but it typically wont average more than $50-$100 a month per residential unit

@Francisco Ycaza What condition are the three units in?  have you factored how much you will need to spend to renovate them to bring the rent to market price if/when the existing tenants leave?

I think you are going to have difficulty increasing rents significantly in the short term and keeping the same tenant without providing them something of value like updating the apts.

With that said, the prices seem pretty low so you should definitely be able to increase rent if you update the apts.

@Jayson Greenblatt sure their may be some landlords who have covered utilities however the majority of renovated apts will have separate meters and tenants are very aware of paying their own utilities.  I find it very rare that there is a legal 2 or 3 family home with only one utility account.  More often you see this when someone is renting out their basement illegally and there is only one gas/electric meter for the basement "apt" and the main floor.  In my experience $1700 plus utilities for a renovated 3 bed isn't out of the norm especially is the better areas of the bronx

Hey @Bill Thomas

It all depends on the purchase price but likely in the 3-5K range if its not a short sale.  For short sales you have to include Real Property Transfer Tax which is roughly 2% of the sale price.

I can connect you with my title company who i've used for purchases in the BX as well, hit me up if interested