Sunday, August 17, 2014

Bed-Stuy Under A Million: 992 Herkimer Street

New to, it's a 2-Family in Bed-Stuy under a million dollars.  Now everyone says they want a fixer-upper in Bed-Stuy under a million, but talking about it and being about it are two very different things.  The owner of 992 Herkimer Street gave us a tour of the property this week.  This barrel-front brick building is around the corner from the A/C trains at Ralph Avenue.  Yes, Ralph - which might sound about as far as Hempstead to the untrained ear, but is merely one stop further east than Utica, the stop where the top gems sell for $1.8M cash before even hitting the market.

992 Herkimer Street isn't situated on the prettiest tree-lined block you ever saw, but when you're buying a turnkey 2-Family with a yard and in-place $1,850+/month in rental income - all for the price of a condo - does it offer an interesting value to those priced out of the beaten path?  Given the fact that quick & dirty frame house flips are blasting past $1M in Bushwick now, this seems like a right fit for a few buyers in this price range.  Currently listed with a broker or two for $889K (whose pictures are ostensibly much fancier than ours), the owner says there's not an exclusive and that bids can come in directly too.  Afterall, to list a property for a commission and declare "No co broking" doesn't do the seller much justice.  How much is $889K minus 5-6% commission?  You do the math.  Contact us for more details.

The property can be delivered vacant, or with the market-rate tenant on either floor.  Easily duplex the basement with the garden floor, or take over the top floor with the skylights.  Rental covers 2/3rd's of your mortgage with 20% down at the price the owner tells us she'd go for.  Skip commissions if you'd like and pass the savings on to yourself.  The color scheme on some of the interior isn't everyone's taste, but everything's in pretty good shape...

And the apartment we didn't get to see is in even better shape, as evidenced by the broker's pictures.  The boiler is gas and the heat is forced air, which is easy to set-up for central AC too without having to gut the house and tip-toe around details.

We're suckers for penny tile in the entryway...

All in all, this is a nifty little house that's off the beaten path, but well within 2 blocks to the express train, and at a manageable pricepoint for this market.

Pro's:  curb appeal, turnkey with original details, flexibility with market tenants in place or delivered vacant, well under a million, 2 blocks to express train, can avoid broker commissions and bid direct with owner, easily install central AC, 2-Fam house at condo prices

Con's:  further than many buyers are ready for, not the most picturesque block, simpler backyard access needs to be built out, not everyone's style

Ideally:  we'd go for this over Bushwick comparables, but that's just us

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