Rent Controlled Units as long term investment

I have done this 20 years ago with apartments in Kew Gardens. It was one of the best investments I ever made but the market is much different now and investors have pushed up prices of these occupied apartments and the tenants or more aware of their rights. Your biggest problem would be right of succession the 70+ tenant might have a 40 year old child that has the right to take the apartment and I think in NYC its double succession so it could be taken over by the following generation. So price would be the most important factor in taking this risk and not dumping a lot of money in it every month. My two cents.

A have heard of a 70 year old gay guy getting married to 40 year old woman so that rent control continues after his death and to extract bigger settlement to move.

Everything abovve plus one name: Jeanne Calment.

Jeanne finally gave up her French Stabilized apartment. She said she wanted to wait until all the kids were dead.

If I remember correctly someone bought her French country home and then croaked well before her. She stated "Everyone makes some bad investments" or something f the sort

Think you have to be nuts

Orig, You may want to keep in mind that there are professionals doing it ,who know the loopholes, how to negotiate with the clients (sometimes harass using illegal tactics) and have expert lawyers on staff, willing to pay higher than some one without an edge. As in any investing, you need to understand what your edge is?

I wouldn't get involved in that type of investment. The tenant might live a lot longer than expected, someone might 'inherit' the lease, the laws could change, etc. The rent will also not keep pace with inflation, resulting in a larger monthly loss over time. These tenants rarely leave if the rent is far below market rate. I would leave it to the professionals who specialize in that area.

You could not possibly consider doing this as a one off investment, particularly in Manhattan. In the outer boros, the rent difference between stabilized/not stabilized is not as steep. If you were buying 50 of them, and could share maintenance and other expenses, get periodic boons from vacancies to offset the substantial losses, perhaps this might make sense. The rudimentary tax question you ask makes clear that you are not ready for this ride, which is bumpy with a lot of potholes, and some sink holes.

I would definitely do it. Someone's got to make money on these real estate assets, why not you?

Risk diversification: it doesn't make sense to buy one or two but it does make sense to buy 100.

If you have the money to buy 100.