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This would be in the Ridge to 4th ave area in the 70s. Carrying costs would be north of 1800/mo, so it sounds like renting might be a losing proposition, at first blush. Cressent22 had a good suggestion on ratio.....
I was on the board for a while, so I do know sales for 1 BR and studios and that foreclosure 2BR (which kills me)....
I was wondering if things have gotten as soft as they seem right now. I might have to stay put another year.
I was in a similar situation a while ago with a house.
My final decision rested on my revulsion of being a landlord and worrying about rent, repairs, liability, being called at 2 AM because a pipe broke.
So I sold for a pittance and walked away. It was the right choice.
(A divorce should be FINAL! )
We haven't had a 2-bedroom up for sale in quite a long time, so I can't say what the going rate is now. We recently had a studio go for 125k and 2 1-bedroom units go for less than 150k (145 and 149, respectively). As a matter of fact, the 145k sale almost didn't get approved by the board because some members were afraid the sale would de-value their apartments.
I'm not a real estate professional, and I may be wrong, but I doubt prices will go much lower in this area.
This sounds pretty reasonable---I agree that prices do not go much lower than that. It might depend on the building and the shape of the units, but I haven't seen very many 1 bedrooms sell for 150K and under---and the few that I did see were in bad shape. I have seen one bedroom co-ops listed here from 125K (needed to be gutted) all the way up to 310K, maybe a little more.
Sirk, I don't know the condition of your apartment but most two-bedroom co-ops from what I see are listed for over 300K. The cheapest two-bedroom I have ever seen was for 250K and that needed a complete renovation. There are very few two-bedroom co-ops between 250K-300K and those that are listed at the price are usually very small or need a lot of work. (I have only seen two that did not fall into that category.) Based on your square footage and if your unit is in decent shape, I don't see why you couldn't list it at 350K+. Of course, I'm not a professional. But if I were you I would just put parameters into Trulia and find units that are similar to yours and see what they're listed for---it'll, at the very least, give you an idea.
I always find that it's best to buy an investment property as such, not convert your own unit into an investment property. One key reason is emotional attachment. People can be very funny when things like paint color, wallpaper, etc. are asked to change, or are changed. I am not saying that you would be in that situation, but it can be an affront to one's taste with respect to how the unit is decorated when a prospective tenant or an existing tenant requests a change in scheme. Some people can deal with that, and then there are others like one of my sisters-in-law who cannot (and things are so bad with their tenants that I have to deal with them because she needs a buffer). You may not know which person you would be, calm and detached, or still emotionally invested in the property, until you try the experiment, but when you have a lease, it can make for a frustrating experience.
Another reason not to convert an existing property is when you did not purchase significantly below current prevailing market rents. Co-ops and condos can be especially risky in an older building because of the prospect of increased assessments. You can be locked into $2k/month (using a round figure) for a rental, with a carrying cost of $1800, so you would barely have enough for a reserve for any potential repairs for which you are responsible, not factoring when the board may decide that all shareholders have to pay an assessment because there was a critical system failure. The age of the building and number of units can mitigate that to a certain degree, but if you are not in an area that will experience significant appreciation, and co-ops rarely have huge upticks in price, especially if attempting to time the market when you are not subject to a lease, such that it would not make sense to purchase that unit as an investment property and move locally.
Now, if you were relocating to California or Texas or London for a couple of years, and wanted to keep your home in NYC, it would make sense to convert your residence to a rental. But, given that you would only be moving to another area in the region, I would be inclined to divest of this property when it is financially reasonable to do so, unless there is a personal reason to keep it, such as the prospect of housing an elderly relative, or something of that nature, at some point in the future, and you wanted to rent in the meantime.
If you want to own investment property, look for a small building, two or three-family house, where you can live in one unit and rent the others. Or, just purchase an investment property at some point in the future.
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All the world's a stage, and all the men and women merely players: they have their exits and their entrances; and one man in his time plays many parts, his acts being seven ages.
~William Shakespeare (As You Like It Act II, Scene VII)
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But if I were you I would just put parameters into Trulia and find units that are similar to yours and see what they're listed for---it'll, at the very least, give you an idea.
