This is a Rent-To-Own situation where the Renter/Buyer would close on this 4-Family Townhouse within three years. Renter/Buyer will manage the building and live in a spacious 2,500 square-foot apartment while working toward ownership over the next 3 years.
The building is priced at $4.85M. The Renter/Buyer would put down 10% as a non-refundable Option Fee. The monthly rent will be $19,895, while collecting $12,445 in rent from the other 3 tenants, making Renter/Buyer's out-of-pocket $7,450 for a large 3/4-bed, 3.5-bath apartment.
The Renter/Buyer would take over the management of the building.
To Recap:
- Asking price: $4,850,000
- Purchase Option Fee: 10% of the purchase price (non-refundable)
- Monthly rent of $19,895 for 36 months
- At the end of month 36, the Option Fee + $100,000 of the monthly rent payments can be applied to the purchase price.
- Renter/Buyer has the option to buy early.
- Renter/Buyer is entitled to receive all of the rental income from the other 3 units (currently $12,445/month).
- Renter/Buyer is responsible for all management responsibilities and building expenses.
- Taxes, insurance, and common utilities are approximately $7,182/month
- So effective rent plus monthly expenses total approximately $14,632/month (not including the percentage of rent that is attributable to purchase at close - $2,778/month attributable towards the purchase price). Out of pocket for renter/buyer estimated to be $11,854/month
Additional benefits of rent-to-own:
- Build equity towards ownership by applying a percentage of rent towards the purchase price
- Monthly payments for three years below market as compared to an outright purchase.
- Flexibility to wait for lower mortgage rates
- Significant tax benefits for operating investment real estate (discuss with a qualified tax advisor)
The Renter/Buyer's unit encompasses 3 floors of this townhouse with over 2,500 sqft of indoor living space and almost 500 sqft of private outdoor space. The apartment could be configured in several different ways including four bedrooms with a living area and rec room, or three bedrooms with separate living, dining and rec rooms, or three beds plus a den/office/library. The apartment enjoys expansive closet and storage space, including a walk-in coat closet, a five-piece master bathroom, including steam shower and whirlpool tub, GE Profile and Bosch appliances including wine fridge, a separate kitchenette in the rec room, a washer & dryer in unit, and a large atrium with walk-in coat closet. All the bedrooms are large.
259 W 90th is a clean and well-kept building and it is close to all the shopping, dining and amenities of Broadway as well as both Riverside Park and Central Park. Close to the express train stop for the 1, 2, and 3 with the B, C trains 3 blocks away. Carmine's, Gyu-Kaku, Dagon, City Diner, Cibo e Vino, Osteria Academia, and Takeda are just a few of the dining options nearby with Symphony Space, Equinox and Trader Joe's a few blocks away as well.
