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we offered up to 100k in our central park co-op . we had 9 apartments in a very prestigious building over looking the park . they had original stabilized tenants in them
7 out of 9 took it since they were close to retiring and could not afford to live in the area once the pay checks ended . .
now the last 2 get nothing . we sold enough for us to retire and have enough liquidity so the deal is off the table .
if they decide to move when they retire they get zero now . we sold the apartments we could and that did the trick for us . ,
Last edited by mathjak107; 12-16-2016 at 03:17 PM..
As I said, the sums are all over the place. Million-dollar deals would be tough to get now, but sums upward of $100,000 still realistic. But again, no matter how good the deal, you need a plan for where you're going to go. Can't emphasize that enough.
Yeah they do that all the time. Especially in the case where they want to turn those rent-controlled apartments/buildings into Co-ops or Condos.
I remember back in the mid 80's the 2 story garden apts in Flushing that I grew up in was switching over from rentals to Co-ops. They offered my parents $25,000 to move as we had one of the largest 2 BR floor plans & was on 2nd floor. The 1st floor apt with same floor plan was offered $20,000 to move. The 1 BR's they were offering about $10,000-$15,000. Some took it. Most did NOT & stayed in rental apt for many,many more years.
As a matter of fact I know at least a dozen that do still rent there! Just about everyone of them pay VERY little rent. They are all the elderly parents of the people I grew up with. Now with those apts you are eligible for a NYC program call SCRIE & DRIE. They stand for Senior Citizen Rent Increase Exemption. And Disability Rent Increase Exemption. My mom was on SCRIE. Her rent for that huge 2 BR apt the day she dies was a little less than $500! The program paid a position of the remainder. But just about every elderly person I know that still lives in those apts in Flushing are on that SCRIE program & pay VERY little rent. They are constantly hounding them to this day to MOVE so they can turn them into Co-ops & sell them.
Also when it comes to these rent-controlled apts EVERYTHING is included! A few years back the decided to put separate electric meters in for each apt. People that OWNED apt had to now pay their own electric. But the RENTERS...NOPE it was all included in the rent. So they are losing a n awful lot of money covering the utilities for the renters. While those renting are paying very little rent. So they want the renters out. None of the people I know that still rent there are budging at all. And YES they are harassed! All elderly people that can barely get around too. Sad really.
Now that was around 1986. That's a lot of money back then. My parents & the downstairs neighbor both turned offer down. My mom stayed in that apt until the day she died (in apt!) in 2011 during Irene. The downstairs neighbor which we knew since the 60's had JUST moved out too a week before. Both apts were obviously turned into Co-ops right away.
I now always wish I was on my moms lease! I would have taken over that apt when she passed! There would have been nothing they could do either in terms of raising my rent either. Being Disabled myself I was eligible for the DRIE program. Haunts me everyday. Was a great neighborhood too. Not anymore though anyway from what I have been hearing it got pretty bad...thanks to the NYCHA complex Pomonok.
we only offered the 100k to get the tenants out so we could sell the co-op apartments . if it was a pure rental building and all we got was another stabilized tenant we wouldn't pay a dime .
the money we pay gets reported too so the tenant does owe tax.
there still is no clear cut rule as to whether that payment is at special capital gain rates or regular income rates .
only cases so far have been private irs rulings . one irs representative sends you a letter okaying it at special rates while another representative tells someone else no .
the irs will not as of date make an official ruling as to how the money is treated and each case is up to the whims of the representative you get or auditor if audited .
Yeah they do that all the time. Especially in the case where they want to turn those rent-controlled apartments/buildings into Co-ops or Condos.
I remember back in the mid 80's the 2 story garden apts in Flushing that I grew up in was switching over from rentals to Co-ops. They offered my parents $25,000 to move as we had one of the largest 2 BR floor plans & was on 2nd floor. The 1st floor apt with same floor plan was offered $20,000 to move. The 1 BR's they were offering about $10,000-$15,000. Some took it. Most did NOT & stayed in rental apt for many,many more years.
As a matter of fact I know at least a dozen that do still rent there! Just about everyone of them pay VERY little rent. They are all the elderly parents of the people I grew up with. Now with those apts you are eligible for a NYC program call SCRIE & DRIE. They stand for Senior Citizen Rent Increase Exemption. And Disability Rent Increase Exemption. My mom was on SCRIE. Her rent for that huge 2 BR apt the day she dies was a little less than $500! The program paid a position of the remainder. But just about every elderly person I know that still lives in those apts in Flushing are on that SCRIE program & pay VERY little rent. They are constantly hounding them to this day to MOVE so they can turn them into Co-ops & sell them.
Also when it comes to these rent-controlled apts EVERYTHING is included! A few years back the decided to put separate electric meters in for each apt. People that OWNED apt had to now pay their own electric. But the RENTERS...NOPE it was all included in the rent. So they are losing a n awful lot of money covering the utilities for the renters. While those renting are paying very little rent. So they want the renters out. None of the people I know that still rent there are budging at all. And YES they are harassed! All elderly people that can barely get around too. Sad really.
Now that was around 1986. That's a lot of money back then. My parents & the downstairs neighbor both turned offer down. My mom stayed in that apt until the day she died (in apt!) in 2011 during Irene. The downstairs neighbor which we knew since the 60's had JUST moved out too a week before. Both apts were obviously turned into Co-ops right away.
I now always wish I was on my moms lease! I would have taken over that apt when she passed! There would have been nothing they could do either in terms of raising my rent either. Being Disabled myself I was eligible for the DRIE program. Haunts me everyday. Was a great neighborhood too. Not anymore though anyway from what I have been hearing it got pretty bad...thanks to the NYCHA complex Pomonok.
rent controlled apartments even in nyc are pretty rare these days as most rent controlled tenants are pretty old .
rent stabilization is far more popular . in nyc just under 1/2 of all rentals are stabilized under one program or another .
most stabilized apartments have nothing but heat and gas included . you generally pay for your own electric , parking spots and amenity's if offered . .
many current programs have buildings in the program that have stabilized apartments but rents are thousands . they just agree to have future rents regulated by the stabilization board but initial rents are at market and many are renovated older ones .
Last edited by mathjak107; 12-17-2016 at 05:29 AM..
rent controlled apartments even in nyc are pretty rare these days as most rent controlled tenants are pretty old .
rent stabilization is far more popular . in nyc just under 1/2 of all rentals are stabilized under one program or another .
most stabilized apartments have nothing but heat and gas included . you generally pay for your own electric , parking spots and amenity's if offered . .
many current programs have buildings in the program that have stabilized apartments but rents are thousands . they just agree to have future rents regulated by the stabilization board but initial rents are at market and many are renovated older ones .
Yeah..pretty much everyone I know that are still in those Garden Apts I was referring to in Queens are over 80 years old. They pay just rent & nothing else. Everything is included. The people that own hate that! They pay their own electric now. But the renters pay nothing.
And the owners harass the renters constantly.This harassment is not through the buyout offers. Just day to day living pretty much. They yell at them for leaving the A/C on 24/7. Even when not home. They say they should conserve electricity as if they were paying on their own. I agree with that part & always told me mom to turn off A/C in the summer when she goes out. And she did. She is was 1 person in her final years. In a very large 2 BR apt. She did not need to run all 3 A/C's 24/7. And they would not do that if they had to pay that bill themselves & it was not included in their rent. They are window A/C's.
even though we are the landlord i say thank goodness for rent stabilization .
we would never have gotten the opportunity to own such fabulous apartments in the prestigious building we do if it wasn't for that fact .
the partner we bought out sold his share based on the low cash flow .
i on the other hand saw these up coming baby boomers as folks who are likely to relocate giving us a windfall when sold . . that pretty much is how it played out over the next 10 years making it a fabulous deal for us .
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