Mitchell-Lama apartment condition

[macnyc2003]

Wow, that sounds discouraging, but I think you're dealing with it very smartly!

My daughter had a different experience. She is moving into Penn South, which is not a ML but is similar. I was surprised that PS has a restoration team that works on all the vacancies. The wood parquet floors were freshly sanded and stained, the kitchen cabinets (the original wood ones from 1963) had been refinished, the bathroom had been retiled, and the walls painted and new baseboard molding installed. She was very pleased by the condition of the apartment.

She did have to buy a stove and fridge, and the kitchen floor was bare concrete, so she's putting down sheet vinyl.

But the cost of her apartment is over $100,000, which is a lot more expensive that some MLs. Plus she was charged $900 for the paint job. But as you say, it's hard to get renovations done nowadays, so she was glad not to have to do the work.

[WildAboutHarry]

@ LeoDel_I, The scenario of taking the unit then applying to switch to another unit, subject to availability, should be considered. Earlier posts mentioned it.

Considering you might be able to switch to a better unit after living there for some proscribed amount of time.
Getting into a Mitchell-Lama building is advantageous. For example, if your family got larger you might become eligible to move to a large unit, subject to availability, at an attractive cost; likewise moving to a smaller less expensive unit.

What would your have to spend additional to bring it up to your own minimum standards? That is a good place to start.

How much money per year would you save by living in the Mitchell-Lama?

You would gain massive protection against rising housing costs by moving into a Mitchell-Lama. This might allow you to save money to buy better housing later.

I am clueless as to whether or not renovation costs could be tax deductible, under what circumstances.

[WildAboutHarry]

Here is an easy math way of thinking about it. If you spend $12K to renovate its a bit like adding $1K per month to your monthly fees if you only stay for one year. (Putting aside any finance charges) What does the first year housing costs look like then? Is it still competitive with other options? What about at $24K?

Of course the longer you stay in the unit the more value you get for your money spent on renovations.

A good feature is you are not locked into a lease. You you are ready to sell you do that in your own time.

The are rules that allow children and other family members to assume occupancy of a Mitchel-Lama. It’s possible that money spent on renovations might have value to your family for many years depending on the circumstances.

[kingelz83]

Purchased my Mitchell Lama for 30k, spent 12k on Reno. The math added up.

[Jennbrazil]

In theory, the coop does not pay for any of the restoration costs; either the outgoing or incoming right?

Originally Posted by macnyc2003

Wow, that sounds discouraging, but I think you're dealing with it very smartly!

My daughter had a different experience. She is moving into Penn South, which is not a ML but is similar. I was surprised that PS has a restoration team that works on all the vacancies. The wood parquet floors were freshly sanded and stained, the kitchen cabinets (the original wood ones from 1963) had been refinished, the bathroom had been retiled, and the walls painted and new baseboard molding installed. She was very pleased by the condition of the apartment.

She did have to buy a stove and fridge, and the kitchen floor was bare concrete, so she's putting down sheet vinyl.

But the cost of her apartment is over $100,000, which is a lot more expensive that some MLs. Plus she was charged $900 for the paint job. But as you say, it's hard to get renovations done nowadays, so she was glad not to have to do the work.