Family Building Dillema
What would monkey's here do? I would appreciate anyone putting on their creative deal hat.
假设您拥有40多年的家庭建筑物。没有抵押，它在NYC, in one of the top 5 neighborhoods. The buildingdoes not cash flow很棒的，非常低的租金稳定60％。建筑物的租户不到市场，甚至是自由市场的租户，但这是在现金流量基础上的区域，因为它可能会获得5至6.5毫米的$ 5- $ 6.5mm。从角度来看，Noi就像150K。由于位置和特殊类型的建筑空缺类型，它将以$ 8- $ 12mm的价格获取。（明天可能以约5毫米的价格出售，也许在一年中以〜$ 11毫米的价格出售）
Would you try do the tenant buyouts, family has very good rapport with tenants, most have very good jobs, and the rents they are paying are very close to what they would pay for a mortgage for a 1-bedroom in this neighborhood. And then do the renovations yourself, because A+ neighborhood and building(bones and unique building). Or would you sell, then 1031x take on 50-60% debt and double your NOI without doing much work.
My proforma would get the NOI to maybe 450k on the current property. My experience is such that I am not really questioning its accuracy.
What would YOU do.
Bonus points, there is no more depreciation on the current building. Are we in the 9th or 11th inning in NYC?
Comments (16)
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使用积极的数字，新买家可能会将其建模为12-15％IRR, and they've done this before (you haven't). I'd contact the 4-5 known buyers of this strategy
Which units are you buying out? Make sure you understandnycmulti family laws and the new laws that passed 1-2 years ago.
You probably cannot get the RS tenants out and increase those to FM by renovating. RS/RC units were seen as as-is cash flow on an asset when I was a broker.
总体而言，将所有这些$$扔进建筑物可能不值得。也许看看您是否可以为建筑物再融资，然后拿起现金再购买并种植它。
really hard to take out a loan with a debt constant of 5% to use a equity, when cap rates are 4-6%. The returns are small.
The risk mitigant in selling is that I don't take on the value add risk, and i buy into larger ("stabilized" deals with double the current cash flow. That premise is slowly slipping away as rates increase.
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了解更多For those who commented, I'm well aware of who would buy this as is. The buyouts would be to renovate to floor thru units, and create a first rent. The market for upper end units is very good.
从卖给公寓/合作开发商的三角洲很大，自2019年6月以来，您（上图）是正确的，我们无法放弃管制单位。如果我们能够空置建筑物，联排别墅的对话将为最大的销售数字付出。
As a background I have 10 years experience inCRE,这是我的第二职业GFC之后。I've been on calls for my non principal companies holdings with Rosenberg and Estis, etc, when dealing with rent stabilization laws.
You better sell quickly, since HCR is trying to close that loophole
Getting it vacant is exceptionally difficult, as I'm sure you well know. It'll cost hundreds of thousands of dollars and even then you've got little guarantee of people actually signing the surrender agreement.
这是一个不错的开始，但是从理论上看，您可以做什么，而实践中允许的是两个截然不同的事情
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You don't mention whatyour (your family's)ideal scenario / exit is here with your dilemma. Do you guys want to increase cashflows and income generated? Do you want to dispose of the asset? Do you want to add value / transform the asset to better fit the property's best usage, say by modernizing the layout as you mentioned in terms of converting it into a single dwelling home or into (2) two-floor townhouses (no idea what the current property looks like, I didn't see it mentioned).
Do you or your parents, any siblings, any family members live in any of the unit(s)? Why is this property attractive vacant? What do investors who buy up these properties vacant for a premium do to them? Convert them into single dwelling homes / "urban" cottages, develop them and sell them for a premium to families with $ looking to live the suburb life in a city setting? (This is popular in my neighbourhood right now - converting Victorian-Era duplexes/triplexes back into cottages for affluent "young professional" /
"nouveau riche" couples/families) Do they convert them into multi-floor nightclubs / entertainment theatres, venues, etc. (this too seems to be a trend in my borough, which I could probably compare to Brooklyn/Williamsburg) Is there development potential? Is it built to its setbacks or theres room to add storeys, take advantage of low building to land ratios, etc. Do your parents want to dispose of the asset and collect a lump sum? Is this an heirloom in the family and they'd like to keep this asset for generations to come / it holds some sentimental value.
目标（1） - >处置资产以收集最高回报
Goal (2) --> conserve the asset, but optimize it to be a better cashflow producing asset that isn't returning negative returns, makes it more attractive to future buyers or lenders if/when other opportunities come up that will require capital
Don't sell. Run the value add yourself. Maximize the诺伊然后，当利率回到地球并使用收益购买更多房地产时，请在保守的LTV上进行重新审议。
所以...你在商学院吗？因为这是关于最通用和最直的错误的advice you could give. I mean, it is difficult to be so broad and still be so wrong, so kudos
There isn't a ton of NOI to maximize here, according to the original post. Especially now, the building has丢失的value, not gained, and it'sNYC因此，即使是他可以玩的游戏来提高租金也有很大的风险。
He states current NOI as being around $150k, and based on his pro forma, he could get the NOI to $450k (he doesn't say exactly how, but I imagine it's the do the buy outs / get in a position to do major renovations/transformations/modernize layout and eliminate all the ltl by stabilizing with current market rents aka "value add" play - vs. running the entire development once he's managed to get the property entirely vacant).
编辑：刚刚意识到这是一个几乎一年的线程，有人碰撞。我很抱歉。但是，如果OP可以丢弃更新的更新！
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