Sunday, September 10, 2006

Rooms with a View

247A Henry Street is a smallish top floor railroad flat in a 6 unit building. Aside from a vintage kitchen with a wonderful Wedgewood stove, finishes are ho hum but what a great location and what a lovely view from your sunroom and little back deck. With a little imagination this could be a pretty groovy "romeo" pad.

Unfortunately the realtor is not offering fractional loans, which may be why four units are still vacant even though the property has been on the market since last May.

Also, the group loan rate being offered is 7.5%. If the group loan rates are that high, the price should be lower. After all, the buyer is taking on more risk with a group loan, and sacrificing potential liquidity if the property appreciates. And if the buyer is qualified there is no reason he or she should pay a premium that results in a $3000/month payment, which is about what you would have to shell out based on the $419,000 asking price. (Oh, excuse me. $2309.65 after taxes.)

I mean, this is a building for first time buyers. The kind of buyers who might just as well rent a more or less equivalent space for $1500 a month.

I bet you could hard bargain way down on this one.


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