From: Judy Seigel (jseigel@panix.com)
Date: 07/09/01-12:06:41 AM Z
On Fri, 6 Jul 2001, christine wrote:
> I sure do wish I was a little older and had the foresight and means to
> buy a
> property here in Boston about six years ago, doing something like Judy
> outlined.
> With the market the way it is now, I'm not sure I have a chance buying a
> one-room
> shack in an alley let alone an income property.
Christine, my point was that pretty much any one can do it provided....
provided they can stand the strain & the austerity. Though you do need
SOME savings to start. And now you'd probably have to go to the equivalent
of Astoria, or Williamsburg, ie, out of the city center. In fact friends
of ours just bought a 4 story house in what can only be called a
"Carribean Island" in Brooklyn. The value almost doubled between the time
they went to contract & took possession.
We had $7,000 in savings, which in 1957 was a bit above the median annual
income for working head of family ($5000), so you'd probably need about
$45,000 today. (After all, the reason for doing the hateful work was
because it WAS lucrative. I was making what we called, really, I'm not
making this up: "Good money for a woman.")
The "income-producing property," however, is *easier* to swing, because
bank will give a larger loan. We had 1st mortgage, 2nd mortgage, private
loan, home improvement loan, + loan for heating unit. A lot of real estate
pricing is psychological-- you get more house for the money because of the
stigma (or whatever you call it) of being a landlord, at least in NYC.
If you check the ads you'll see you can still buy a "handyman special" --
4 stories + yard -- for price of a co-op. But in this area NOW that's
likely to be out of range.
As noted, you want a *marginal* area, meaning you also have to be lucky
(or smart -- ideally both) so it improves. In 1957 inner cities across
the board were considered doomed. This neighborhood is/was on the fringes
of "Little Italy" -- today that's status, then it was considered a slum --
& much of it slated for demolition for Cross Manhattan Expressway, etc.
etc. etc. (Of course my mother always considered this neighborhood a
slum... Which is to say, your family may freak.)
good luck,
Judy
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