Something's fishy.

Condos sell as CONDOS, individual pieces of real estate.

This might be some nonsense like "ready for condo" or some such and are SOLD as individual pieces of real estate.

This joint is advertised as being delivered VACANT thus no rent control. (Of course there WOULD be rent control) unless they have filed and been approved for the title chages from one to 8. First step would be a trip to city hall to see how the apartments are titled.

If you haven't seen this give a peek:

http://www.loopnet.com/property/15398886/314-Sixth-Street.
(The mention of "partially rehabbed" sounds like a failed FLIP THIS HOUSE...flipper ran out of cash and credit!)

Yep, landlords take the TOTAL outside square footage and divide by the number of units so your individual square footage usually includes parts of hallways, staircaises, elevators, mail rooms, compactor rooms, communal laundries, basements, etc.
The square footage system sucks but then real estate is dirtier than used car sales, so if you EXPECT dirty there arre no surprises.

The only way to buy is with a friend, a clipboard and a 25 measuring tape.
(A number I always look for is the actual PIPE length on which to hang clothes...the PERFECT definition of a closet. ) I guess we all have things that are of particular personal importance.

they are probably trying to trick a NYC investor into buying it. compared to brooklyn and manhattan its a steal.

its worth approx 1.4 mill based on those #'s if it has a rent roll of $10k-$12k per month. thats assuming the person puts down 25% to make the #'s work.

no one should assume they are going to unload railroad condos for a good buck in this market in a reasonable time period.

even if they gut renovate , atleast 4 of the units will have to be rentals just to keep the investors afloat unless they do the deals all cash and have no monthly mortgage payments.

Quote:

So they exaggerated even more than I thought! Why do you suppose they would send out a glossy 4 color postcard, with this being 1 of 4 "investment grade" properties, without saying that it's condos? Even as condos, there's no flipping headroom at that price for an investor, why not sell them separately? There's something fishy bout this deal, but I can't figure out how it could be low rent tenants if they describe it as "newly renovated".

Brewster the tax records say that it is a 4 story 8 unit "CONDO" building 25X100 and that each condo is only 453 sq ft

www.njactb.org

From google street view it looks newly brick faced.

314 6th St asking $2.25M for an 8 family renovated building of 5000 sq ft ( that seems to be based on outside wall dims counting stairwell). That's 8 railroads of net 500 sq ft each that would need to rent for nearly $3000/mo to break even. Considering it's not condo-ed, and at 8 units subject to rent laws, what are they smoking? even if you condo-ed it, there would be virtually no profit in flipping it at that price.

Will some moron buy this? You could have bought it in 96 for $250k.