(post by BT) Here is a thing you may not know about today’s market. NYC apartment buildings (multi-unit rentals) are in very high demand. The market for these types of properties is super hot today. Rents are going up and so are the higher prices, justified by better income from rentals. A very attractive thing for an investor is the upside or potential of a building purchased below market value due to crappy tenants and low rents… They look for tenants occupying the space illegally, like folks living in their grandmother’s old apt, paying well below market rent. Like a 1BR for $300, really worth $1,500 rent. The new owner evicts you on grounds that you are not the original lease holder and are illegally occupying the space. It might take several months to get you out and once you have been evicted, the renovations shall begin. Newly renovated apartment translates into newly generated income and, oh yeah, value, baby! New market-rent tenant means $1,200 in additional monthly rent, right? Well, that number can add as much as $288,000 to value of the building, based on 5% cap rate! And that’s just one apartment! What can be done if you are there legally and rent-stabilized? $15,000 is the going rate for a buyout in the boroughs on NYC. That’s right! They will pay you $15K to bounce! Better than that, if you have rent control in Manhattan, the investor (aka moron) from my earlier ‘Hard Money, Soft Brain’ post will pay you, in some cases, up to $100K cash to buy you out of one of his buildings in the city!

Have you ever been offered a buyout? And if so, did you take it? Why or why not, and if you did, what did you do with the money? Where did you move to? Post a comment. I’m dying to find out!

COOL OR FUNNY CITY PHOTO OF THE DAY

How’s this for urban beauty? Skyline of the world’s most recognizable real estate town on top of last property lot you will ever “own”. Creepy or cool?