Inside a $1,300 a Month Rent-Stabilized Two-Bedroom Apartment in Manhattan

[mathjak107]

Originally Posted by yodel

Maybe not but rent stabilization was established so long ago (google says 1969) and most stabilized units are pretty close to market rate anyway. As far as I know, there's hardly any rent controlled units in existence now.

Rent control is still about 6-8% of apartments

[yodel]

Originally Posted by mathjak107

Rent control is still about 6-8% of apartments

That's more than I thought. Rent controlled rents are realllly low. I'm sure they wouldn't even pay for maintenance/heat/hot water usage. Still, I guess that was initiated 1962 so I doubt there are many buildings still in the same hands since that time.

[IForgotMyOldAccount]

Rent control was replaced by Rent Stabilized in the 60s or 70s in response to rent hikes and protests. Cancel rent u see in 2021 was done in 60s too. SROs were also at one point more popular than studios and 1 BR. SROs are coming back too called "co-living" iunno legality of those shops but I guess it works.

A lot of RSU today are around or near market rate in the good locations. As this article shows quite a few good deals to be had and a couple were availble last year during pandemic. The avg RSU is like $1300/m I think and yes the system is abused and doesn't serve the intended market. RSU is not an affordable housing program, but it was designed to replace rent control which arguably is was. Its a price control on rent. It was NYC attempt to slow down rent hikes when 20% increase after a year was the norm.

Before you listen to landlord crocodile tears tho, the average RSU unit last I checked was $1370/m and after expenses tax breaks profit per unit was $540-$600. Yep it puts into perspective the real costs and how market actually works.

[mathjak107]

Each case is different...average means nothing ....

In our case one apartment we had left was actually negative ..the other positive...they were at zero cash flow and there was no profit from rent .

But we made our money buying out the leases of 7 out of 9 tenants for 100k each .then we sold them For 7 figures and multiple 7 figures each .

The last two we sold for cents on the dollar to an investor group just to unload them .

So there is no such thing as average profit ...each case is different.