Posted by MikeW on January 20, 2000 at 10:58:35:
In Reply to: buy-out figuring posted by Raymond Howard on January 19, 2000 at 19:56:21:
I did the math. Based on a possible market rent of $2K a month, the present value of the increased rent over 40 months is approximately $66K. Now, since the apartment is controlled, I don't know how much it would cost him, once it is vacant, to get it out of regulation (controlled apartments fall onto stabilization when they vacate, but I don't know the details of how the rent is calculated. Then once it is stabilized, he has to MCI that rent up to $2K).
I would offer to leave for $60K, and tell him your reasoning. You'll probably have to negotiate down, but I would go for less than $40K.
: My thanks to Mark and Mike for their sincere concern and interest about reaching a feasible buy-out figure to present to my building owner... I am confused by the phrase " get the pesent value of that cash flow stream at,say 7% over 40 months... the actual figures involved are my rent of $131.39 ( increases were lost over thirty years of refusal to correct violations by present and past building owners )... and the possible income from my floor through railroad coming in at an annual $24,000 to $27,000, depending on much the place is chopped up... so that's it... my annual $1560 vs. the possible future rents... so what's a reasonable buy-out figure???...As to Richard"s suggestion that the owner will wait til I can't get up the stairs??? I've been doing it for the last thirty years and am good for at least another twenty. As they sang in West Side Story, " Smoke on your pipe and put that in. "...Again I thank Mark and Mike. Sincerely,R.
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