Paralel Universe
Started by falcogold1
over 15 years ago
Posts: 4159
Member since: Sep 2008
Discussion about
Here we have a seller who has created quite a bit from very little. While the rest of the market headed in one direction this jewel headed in the other. Their might be a lesson here. Real Estate value only heads in one direction? StreetEasy History 01/25/2007Previously Listed by Corcoran at $1,295,000. 09/26/2007Corcoran Listing is no longer available. 01/12/2011Listed by Prudential Elliman at $1,795,000. 02/09/2011Price decreased by 6% to $1,695,000. http://streeteasy.com/nyc/sale/576719-coop-505-east-79th-street-yorkville-new-york?email=true
despite the fugly reno results that for most would require the kitchen and baths be razed; they did spend heavily---someone gots to pay!!!
Well let's do some math.
Paid for both units a total of $1.269. With closing costs shall we say $1.3?(maybe some avoidance here of mansion tax)
Costs for combining the apartments and rennovation, 200K? Total $1.5
Let's assume some luck(to put it mildly) now gets 5% below current ask, $1.610. Now deduct selling expenses,flip tax, etc., 10%?
Lesson is, to quote the great Larry Sanders, "No flipping."
minimum 400k for the complete gut&combo--at 1.695 they cover cost, before re commissions etc
i say it trades 1.3--the renov cost, but at least it made for a fun project
I would put the trade at 1.3M if the reno was beautiful.
Sure don't want to be the first bidder. They have to take the heat and break the bad news.
How many 'l's in Universe?