The Market

A Manhattan 4-bedroom for $150K? Of course there's a catch (or two)

By Virginia K. Smith | August 25, 2015 - 2:59PM 

While the idea of a four-bedroom in Manhattan for under $200,000 is enough to make us salivate, this Washington Heights listing we came across requires a pretty particular kind of buyer. For starters, it's an HDFC co-op, which means it's income restricted; in this case, that means a maximum gross household income of $54,720 for a one to two person household, or $68,084 for a three or more person household. And on top of that—like so many HDFC co-ops these days—the sellers are requiring that you shell out that $150,000 asking price up front, all cash.

As expected given the price range, prepare to do major renovations. The place is far from move-in ready. (Indeed, the listing description ends with a number of hashtags about its desperate need for renovation; "#fixerupper #wreck #handymanspecial #makeityourown #inneedofrenovation #inneedofrepair #renovateinyourowntaste"). Take a look at the interiors and floor plan below:

As is typical with HDFCs, there are heavy flip taxes to help ensure that prospective buyers are in it for the long haul, not as a quick investment opportunity; in this case, you'd be giving up 30 percent of your net profit to the co-op were you to eventually sell, and keeping the remaining 70 percent for yourself. That said, it is a corner apartment with high ceilings, an eat-in kitchen, the potential to add a dishwasher and washer and dryer, and easy access to the 1 train, which is just a block away. So what do you think: Any readers out there with tons of liquid access, a limited salary, and the time, energy, and cash to pour into a renovation?

Related

Buy a co-op at a discount: all about HDFCs and how to snag one

The 10 best NYC neighborhoods for college grads in 2015

Buyer beware: learn from this HDFC co-op's mistakes

Brick Underground articles occasionally include the expertise of, or information about, advertising partners when relevant to the story. We will never promote an advertiser's product without making the relationship clear to our readers.
topics: