Property Tales

The Bronx used to be a haven for double-digit returns for real estate buyers, now will more likely earn them high singles. But it's still a hot market. I mean, you can put your money in the bank and get one percent, if that. Or you can get a maybe negative return in the stock market-versus six or seven percent in real estate. What are you going to choose?

-Marco Lala, real estate broker, Massey Knakal Realty Services, Northern Manhattan/Bronx office

THINK BROOKLYN AND QUEENS, and trendy communities like Park Slope and Astoria come to mind. You might not be able to afford them, but their nouveau chic reputation gives cachet to neighboring neighborhoods.

Think Bronx, and Riverdale comes to mind. But that's old money in million-dollar mansions-rather than worn townhouses bought as fixer-uppers and rendered seven- figure-worthy. Somehow, the posh Riverdale image doesn't translate into the message, "I can do that, too."

But Marco Lala points out several reasons why the Bronx is very desirable for people looking to invest their money in a property where they can reside, while earning rents that help them pay their mortgage and having additional financial benefits of real estate ownership, such as building equity and property value appreciation.

"In Brooklyn, they're asking a million plus for rinky-dink buildings. That's not so in the Bronx. There are Bronx neighborhoods where you can still buy two-or-three- story apartment buildings with two to seven units for about $300,000 to $700,000," says Lala, Massey Knakal's Bronx specialist. "But you have to search hard, because the market's going crazy due to low interest rates. Owners are refinancing properties at lower interest rates, then plowing their return cash in to other properties. If, after refinancing, they put $250,000 in a bank, it's earning next to nothing. So, they reinvest in more real estate, getting eight or nine percent-that beats keeping it in the bank."

Think of the Bronx as Manhattan North. It's just across the river, and most areas are a 20-minute subway commute from midtown. And, many Bronx neighborhoods' qualities and demographics are similar to those of northern Manhattan.

"With the exception of the South Bronx and some pockets like Pelham Parkway and Riverdale, you're basically looking at areas that are ethnic and cultural melting pots, and they've been that way for years. Riverdale has mansions and Pelham Parkway has fewer subsidized tenants. Those are considered more desirable neighborhoods. Elsewhere, there're mostly middle-income families, where both husband and wife-or both parents-work. For real estate investors, the primary difference in neighborhoods is that some are more mature than others in terms of price. Since neighborhoods tend to be similar demographically, it's really a matter of locating a good investment opportunity-a property that meets your requirements in terms of space, price and returns. Wakefield/Williamsbridge, in East Bronx, is showing good opportunity. Especially in areas on either side of White Plains Road, in the 220s and 230s. You can find affordable smaller multi-unit buildings, requiring low down payments, with rental units to offset costs. But the growing demand is already driving prices up," Lala says.

Most buildings are detached or semidetached, and can be brick or wooden frame, or shingle-sided. They usually occupy 25- or 50-foot lots.

"Buildings are three to four stories and have two to seven apartments, with one or two apartments on each floor, and perhaps one basement apartment. These aren't mixed-use, but purely residential-and move-in ready," says Lala. "Apartments have one to three bedrooms, feature hardwood floors, eat-in kitchens, standard-size living rooms. Some are railroad-type apartments, but layouts are usually standard, with bedrooms off hallways."

Although Wakefield/Williamsbridge doesn't boast bistros and boutiques, these amenities are a bus ride away in Westchester and Yonkers. Manhattan-bound subway access is excellent along White Plains Road, and there are express buses to Midtown.

Massey Knakal's current listings in the Wakefield/Williamsbridge area include a 25-foot-wide, two-story brick apartment building with three one-bedroom apartments, one two-bedroom apartment and one one-and-a-half-bedroom apartment. The units are currently fully occupied. The building's gross annual income is $59,304, and the asking price is $650,000. o