Home Buying in Midwood>Question Details

Paprica, Home Buyer in Brooklyn, NY

Renting a co-op through management company. I am ready to purchase but, my unit is not for sale!

Asked by Paprica, Brooklyn, NY Tue Aug 7, 2007

#1. I live in a building where a majority of the tenants are renters. I think that a small percentage are owners (not sure). I am ready to be an owner, but my current apartment is already owned by someone. I would like to remain in the same apartment because of it's close proximity to the entrance of the building but, there are currenlty no vacant apartments on this floor. Is it possible to purchase an apartment in the building and have the MNGMT CO rent it out, while I continue to occupy my old apartment?

#2 - The managment company renew's my lease every year, increasing the rent by 50-75$. I can no longer tolerate that. And for that reason, I would rather purchase an apartment. What is my best bet?

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Rhonda Holt’s answer
Hello, first you need to find out before you buy if you can rent directly after you buy. Even though the management is renting to you, for owners you may need to reside in the co-op you buy for 1 or 2 years.
Also, you have to be financially qualified to buy and still rent as well. The management company is going to ask you to verify income, credit, plus a down payment. It's a lot to take on if you have never owned before. Take time and find a co-op to buy that fits your needs and stop renting because it's a waste of money.

Rhonda Holt
Full Time Top Sales Agent
Specializing in Co-ops and Home Sales
Weichert Realtors, H.P Greenfield
Brooklyn, NY
Web Reference: http://www.KandHhomes.com
0 votes Thank Flag Link Tue Sep 22, 2009
There are really only two entities that are able to 100% accurately answer your questions and they are the management company and the co-op board. Every co-op board and management company has thier own set of rules, restrictions and procedures. Contact them and get the information first hand.

My suggestion to you is to write all your questions down so you can contact them one time and get your questions answered without having to repeatedly call them. Then call the management company and/or the co-op board.

The only other alternative is if you know of a Realtor that has had a number of deals in your building and is familiar with the in and outs of renting and purchasing within your specific building.

Dont forget to ask:
1. What are the income requirements of a purchaser?
* This is not only about how much money you make per year but also how much down payment is required. Are you required to have a certain amount of money in your accounts after purchase? Sometimes you'll be required to prove you have money in your accounts to cover the mortgage, maitenance and insurance for at least 6 months.

2. How many years do you have to own before you can rent?
*Many buildings require the unit to be owner occupied for a 1 to 2 years before you can rent it. This may not seem important now but you may want to move out one day and keep the unit as an investment.

3. Is there a Flip Tax?

4. What other fees might you incur as buying a co-op in that building? (ex: a move in deposit which is sometimes refunded and sometimes not, application fee, credit check fee.)
0 votes Thank Flag Link Thu Sep 17, 2009
For the most part if there are individual owners within the building then you should be able to purchase a for sale unit as well, the only thing is that you have to wait for one to come on market or proactively contact current owners to see if there is any interest to sell. Considering that you are located in Brooklyn, there are probably very strong restrictions as to the same person renting one unit and buying another as an investment when it comes to co-ops. You may be able to contact one of the board directors to discuss the possibility with them--they probably know the community's rules better. Either way, from the sounds of it it might be a better idea to buy a unit to occupy yourself considering how bothered you are by the annual rent increases by the management company. It would be a great step towards homeownership as well as a sound investment.

Contact a local Realtor that is knowledgeable about your area and especially your co-op building. S/he should be able to let you know whether or not there are any units for sale in your building. If there are, then you can work with a mortgage consultant to get preapproved and get on your way to owning your very first (I assume it would be your first), own home! I see nothing hindering you from owning a home in your building--you may to have a wait a bit but it appears very possible. Best of luck!
0 votes Thank Flag Link Thu Aug 9, 2007
Is there another unit that can be sold in your building that has the close proximity to the entrance? Do you have any form of rent control in your City and how does it effect your lease?
0 votes Thank Flag Link Thu Aug 9, 2007
Pam Winterba…, Real Estate Pro in Danville, VA
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