Thanks for the info. The realtor finally got back to me and said that there isn’t a Cert. of No Harassment. The owner had originally planned on converting it to a single family home, but hasn’t had the chance. “But now worries! It’s a really easy thing to get in order.” hahaha

BTW, have you seen the Langston Hughes place? What are your thoughts on it?

Do realize that prices are generally a bit higher West of St. Nick since that’s the accepted border of “South Harlem”.

That said – as far as I know, things haven’t changed all that much over the past couple years. The bottom was probably late 2009 / early 2010, but it’s just barely higher than that now and given that it waffles a bit naturally it may be down near the bottom again.

SOME townhouses in South Harlem seem to command more money than townhouses in other parts of Harlem. There are occasionally some fairly high comps in that area. Because of the proximity to Columbia, there’s more demand to be in that area by Columbia faculty and people who see it as the new Upper Upper West Side.

That said… The price has everything to do with condition and square footage. Specifically the amount of demolition needed and how much of the structural (joists, etc.) are in good condition. If it has working utilities that would be another big plus.

Based on your numbers I’m deducing it’s got 4575 sq. ft. – which is a nice size. $720K would be $157/sq. ft. – that would be a very good price based on what you described. But it sounds like the seller is unrealistic – to get it you’ll probably need to go considerably higher or find another place. Which is the whole thing about price and value – it’s worth whatever someone will pay for it. And the seller appears to be holding out for someone who really wants to be in that precise area.

Great blog! I’ve been scouring the net for info. on costs of renovating a townhouse in Harlem and this is the best I’ve found yet. Very informative.

I am currently looking at a townhouse on Manhattan Ave, across the street from the park. The townhouse is currently configured as an 8-unit rental. It’s a mess. Linoleum floors, every historical detail was ripped out years ago. Has no character whatsoever and it’s falling apart. It’s currently on the market for $1.4MM. It’s been on the market for 3 years, initially priced at $3MM in ’08. Even with the drastic reduction, I feel that it’s too high at $306 sq/ft. In another post you said that townhouses should be selling at 40% of their ’07 sale prices. The current owner bought this townhouse in ’07 for $1.8MM. Does $720K seem a more appropriate sale price in ’11?

I want to convert this to a single family home and am wondering what purchase price do you think makes economic sense?

Thanks

As far as having an NOI of $70K, I’d look more closely at the Debt Coverage Ratio. How much money will you be making after paying the mortgage? If rents went down 10 or 20 percent could you still cover the mortgage and do all the repairs and maintenance that comes with a 100+ year old building?