All Forum Posts by: Lauren C.

I was at a comedy show last month and one of the bits went something like this: "I walked into a bookstore recently and all I saw were books telling me how I can make money doing various things that have made other people rich. So I picked up a book called "How To Get Rich Selling Books" and turned to the first page. It said "Thanks."

It's not surprising that so many "experts" are selling their airbnb host courses because that's nothing new as far as a business model. However... nowadays, I can easily find their properties on airbnb/vrbo, and I can see the listings, prices, and occupancy. 

It's not terribly difficult to figure out who is absolutely full of it. I'm obviously not going to name names, but I don't know how some people sleep at night.

The implication is that insurance premiums will increase on account of climate change, and it will become quite difficult to find insurers (as it already has in FL)-  spooking potential buyers and thus lowering the value of real estate. I think the part about "New Yorkers" is somewhat irrelevant and buries the lede, although I suppose it sort of represents the issue of perceived "lower cost of living" in the short term as compared to the price you pay (literally and in the emotional sense) over the long-haul for the homes, whether or not they're owner-occupied. 

@Ryan DavisI've lived here for several years in co-op apartment. We own shares in a corporation that owns the building and the land underneath it. The "purpose" of the co-op is to vet who lives in the building and establish what is/is not allowed. Co-op boards are made up of shareholders (that what the owners are referred to), and they make sure your financials are in order and you're not a shithead - so you're unlikely to to be foreclosed upon - and thus the maintenance is paid and you're contributing to the building.

It's a really wonderful living arrangement for your primary residence or pied a terre in NYC. It is traded like a condo but they're often less expensive because they're in the non-luxury space (<$5M).

The actual point is to deter anyone from becoming a landlord. In my building, we do allow owners to sublet for a total of 2 years but it's really to accommodate life circumstances.

So, if you see that something is a co-op, it's not in play. If you're doing NYC, maybe look in outer Brooklyn or parts of the Bronx. Look for multifamily, because condos, like co-ops, usually impose a "flip tax" (not really a tax per se; it goes to the building reserves). One good thing is that property taxes are low. Jersey City used to be good but it's too expensive now IMO. NYC is a developer's territory, it seems.

It seems that it may be difficult to find cleaners, labor, etc. because of the severe shortage of affordable housing- even the Springs and Hampton Bays are very pricey now. I'm an East Hampton person (been going for 11 years) and an STR investor, and so I'm interested in this as well. But I really think it's a (barely?) break-even situation at today's prices and that's without personal use in the high season. Now, appreciation is another story completely. I'd park my money out there in a heartbeat (as long as it wasn't in a flood zone). I like Greenport because there is (limited) multifamily zoning in the walkable village. It would allow for a nice house-hack.

It was only a few years ago that the average home out there dropped below $1M...there was an article in the Times that I remember well. I wish I had the funds to invest back then! Luckily, the Hamptons will NEVER be out of style. 

@Chris Seveney I looked through everything, and all I could find is the number of shares that were traded, since it's not real property. They don't even have square footage on things because it's not considered to be official. All I knew was that the last owner put up a wall and it was then called an official 2 bedroom to me by all parties and the appraiser seemed to go on what was listed online (we don't have a true MLS in NYC).

I got a HELOC last year (to furnish an STR) and it was considered a 1 bedroom with office/den. I chalked it up to an appraiser who wasn't familiar with the intricacies of these very, very specific pre-war buildings in a 4 block radius. I've had a re-do on a bad purchase appraisal before, that happens all the time. And the line was small, so it didn't matter to me at the time.

Everybody is probably spot on here... it's quite a lot of effort for a potentially losing battle. It's just tough because the sale of my home was money for my next deal.

@Russell Brazil

Yes, that is what is so frustrating here- conflicting data. I've seen 8 feet min width and 80 Square feet area, and I've see 7 feet min and 70 square feet. I was told it's a gray area in terms of what the local agents who regularly buy and sell in my neighborhood say. If someone told me that in their professional opinion it's a gray area as to what a bedroom is, but ultimately THAT is an intentional falsehood because the legal definition is always considered to be cut and dry, I don't know if it's reasonable to think I could refute what they're saying, as a non-licensed person.

It IS my fault, ultimately. And the fact that it's a cooperative is also a factor. It's just not the same as a house. The square footage is not even considered to be official.

@John Clark Yes, I will check with an attorney, because the "delayed discovery rule" may apply but otherwise may I'm SOL. The agent was our friend, and that's why I believed him. Idiot move.

I purchased a NYC (cooperative) apartment that was listed as a 2 bedroom (and appraised as a 2 bedroom- like my place, the comps were 2 bedrooms, one large and one small). This was my first primary home purchase, and I bought it before I became a real estate investor, so I was clueless. I am trying to sell the apartment now, 6 years later, and I have discovered that my 2nd bedroom may NOT be a legal 2nd bedroom. It appears that the comps used for the appraisal all had second bedrooms that were legal (greater than 7-8 feet in width, depending upon whose definition you use), whereas mine has a width of 6 feet 10 inches.

The second bedroom was created by adding a wall between the kitchen and dining space by the previous owner. So when HE bought it, it was 1 bedroom, but the kitchen was very large.

(The appraisal is of course not a legal document and there is the disclaimer stating this.)

It seems that the seller's agent AND my buyer's agent have knowingly misrepresented the property. (Or, it's not real property, it's shares in a cooperative, but I think the same rules apply...?) They both stood to financially benefit from higher commission, because a "den" vs a "bedroom" would change the value significantly. This means I put a higher down payment, had higher closing costs, and there is a higher mortgage payment monthly for the life of the loan. It also means I would sell for a lot less than I purchased it.

The sellers agent had no fiduciary responsibility to me, but my buyer's agent did. He can't, as a licensed real estate professional, say he did not know the definition of a legal bedroom. He should have told me this and helped me negotiate a lower price, no?

Is this a legit lawsuit I could bring against him? Seems that any kind of statute of limitations would be a sort of delayed discovery thing (in other words, I couldn't have known until this very moment) but I'm not sure.

Yeah, I know- why didn't I look this up? It's because I walked through the apartment, asked him "Is this a legal bedroom? Because there is no closet." and he said "Yes, you don't need one in NY as long as there is a window." That is true, but turns out misleading. A full sized bed does fit and there was one in there at the time of purchase. 

I will ask my CPA all about this, of course!!, but I was just wondering if anyone here had some experience with the following... Let's say I sell my short term rental, I am unable to move the money via 1031 for whatever reason, and I am on the hook for capital gains taxes. I completely refurnished the home, top to bottom, plus did some capital improvements like add board and batten, install built-in bunks, and some new fixtures. My question is whether or not the actual cost of the furnishings themselves can be considered something that would offset the capital gains. I know that these are technically considered personal property and have nothing to do with the appraisal or value of the home. And things like the entire interior paint job of walls, ceilings, railings, bathroom vanities, and cabinets are considered to be repairs, technically. But, since the furniture is considered to be a capital expense for the business that is the rental property, is there anything that is usable there for offsetting gains on the sale? (Home would be sold totally furnished.) I'm sorry if this has been discussed elsewhere, but I'm not even sure if I'm posing the question correctly.

I'm one of the many people who's now got considerable equity in my Smokies cabin. I'm considering selling for the reasons already outlined here, planning to purchase elsewhere using 1031 exchange. Many people are buying cabins in the smokies using 1031 funds from the sale of a property...the buyer of those properties also used 1031 funds... and so on. Given that, every time I get nervous that it could get difficult for me to sell if I wait until the end of the summer (rising interest rates, a cooling market, a war, etc.) I remember that many people have only 45 days to stick their money somewhere. (I'm going to have that problem as well.) 

I just wonder: how much does the fact that people are 1031'ing their way into/around STRs contribute to the trajectory of the market?