All Forum Posts by: Joseph Kotey

@Jason Lee Thanks so much for the reply. Any amount is better than 2.5 haha. 8-10 million out would be great. I'm going off of what a developer who wants the deal gave me. It's near Bedford ave on Eastern Parkway, Crown heights. Pretty good area. 

2 are Market rate, my cousins and the super who would leave. I was told that we can pay people to leave then get a certain percentage of tenants to allow the conversion. Is this not true? I know we can't do that to rent it for higher amounts as we would only get a 20% increase plus renovations but I was told for a conversion if approved by tenants it allows for more options. Giving them an option to buy etc...

Hi our 14 unit rent stabilized apartment building is not very profitable  due to strict rent stabilization laws in NYC. I know it involves significant renovations and legal help but I believe all units will sell for about 12 million and we would only be into in for 4 million or less compared to selling or doing buyouts based on the appraised value of 2.5million. We currently don't have any debt so we have room to work 

I'm NYC has some ways to make this deal harder than it looks so please share any Pros and Cons you're aware of. 

Thanks!

Hi we have a 14 unit apartment building in Brooklyn, Due to rent stabilization the only way to make money seems to be to do a condo conversion then sell them. What are the Pros and cons of doing it in that market? Thanks!

@Frank Patalano see above

Hey @Frank still working out details on Brooklyn. Sending an email now that will hopefully allow us to come to a conclusion 

Thanks @Anthony Thompson yes it seems like they  do want to run a charity haha.  You answered my  questions. I wasn't thinking that I would make the 3k completely passively so I'm willing to put some labor into it like doing AirBnB or the like.  I'm trying to find the right mix of passive and labor intensive income  but yes the reality check is helpful for sure.  I'll have more $ to work with on a full buyout so I'll have to figure out how to allocate the funds but I figured 100k is a good place to start and learn.

@Frank Patalano  Thanks! a lot of folks are saying I must stay in Brooklyn "because its Brooklyn" so the bigger question is, I want to make sure Its worth forgoing the "magical long term benefits" of the  Brooklyn /NY market so I can invest how I want to now on my own. 

Yes there will be pretty much no tax for us. Why would you get out of Brooklyn ASAP? Google and Amazon recently announcing that they are moving close is making this decision to take a buyout or partial buyout that much harder, ugh.

A little long but interesting: I own a part of a 14 unit that is RENT STABILIZED in Brooklyn NY with 7 Family members which has been in the family for decades.  The rents are very low and only 25%-50% of market rates due to the very strict rent stabilization laws. Therefore the property value is that much less due to low rents and strict laws keeping them low.  Even though it's paid off, it's barely enough income for 2 people  and certainly not 7. The only way that we can make money that I know of  is by going through the intense process of converting units to condos.

The problem is that half of the family wants to keep it unprofitable as is for at least 5 years due to a random, confusing request by our deceased Grandmother. They are also already well of financially and not interested in business in general. Some are even ant-business and anti landlord. They feel bad about trying to get rid of tenants etc. My side of the family wants to realize the profits one way or the other so we are thinking of selling or taking a buy out.

I think a full or at least a partial buyout is best as we will not be able to work well together due to different business philosophies  . I run a small delivery service and have 2 rental properties. I would like to increase my income asap and would like to do it through rental income or something similar. 

So feel free to give your feedback on the family property but almost more importantly I would like to know the best way to turn 100k into 3k-5k a month rental income or the like. I'm in Providence RI. Multi families are 200k-500k depending on the area. Thanks!