In 1994, I bought my first building in the Bronx, a 21 unit 5 story walk-up. I really didn't know what to expect, I had never owned a building before. I remember one night speaking with my wife just before we bought the building. She had said to me "you can teach me how to manage the building, and I'll manage it." I turned and said to her "that's a really good idea, but who's going to teach me?"
As it turned out, I tought myself. Continued to manage the building for several years. The building was mismanaged and needed a lot of attention besides the normal management of a properly managed building. In addition, dealing with city agencies, rent stabilization laws and tenant non-payment/collections seemed to be an ongoing problem.
It literally seemed that the entire process was geared towards making building ownership fail.
Though it was very difficult, it was also very rewarding both personally and financially. After several years, I was able to clean up the building and do many renovations and improvements. I then wound up selling the building for a nice profit.
Using the IRS 1031 exchange, I bought 2 smaller, 7 family buildings in Westchester County. I quickly realized how much easier it was to manage these buildings over the Bronx building and vowed that I would never buy another building in the Bronx. Over the years though, it wasn't that I would never buy another building in the Bronx, but that it seemed prohibitive to own less than a certain amount of apartments. If I were able to buy a building or buildings with 200 apartments, it would be more than worth owning them. This seems to be a minimal number to offset all the negatives and turn building ownership and management into a positive experience for me as well as the tenants.
Do you own an apartment building in the Bronx and are looking to sell it? I am looking to buy 200 apartments in the Bronx. Ideally it would be 2 - 100 unit buildings or 3 - 70 unit buildings. I am willing to pay as much as 8% CAP Rate for a good building.
Give me a call or email me.
Peter Nikic 914-804-0037