Owner texted me a 1BR apartment he just got back today. Legal rent? $768.18 Here’s the cost estimate to get this unit back online for the next tenant (and requirements from NYC): - 7,500 to clear the apt and fumigate - 15,000-20,000 for demo and debris removal after demo - 7,500-10,000 for architectural fees and filing fees/permits - 30,000+ for new kitchen (with plumbing permit) - 25,000+ for new bathroom (with plumbing permit) - 30,000+ new walls/ceiling sheetrock, plaster and paint (GC cost) - 10,000+ for new plywood subfloor and hardwood flooring (no.2 oak) - 15,000 for new electrical if no new riser is required (plus electrical permit) - GC fee, overhead, insurance, misc is roughly another 20,000 The law would consider this $100k+ renovation an IAI (Individual Apartment Improvement) capped at $30k, giving the owner a $166.66/mo return on over $100k investment. Not only will a bank never finance this deal, but even if the building had the reserves — the owner would not deploy this capital bc it will take over 50 years just to recapture $100k. So what happens? This apartment will be emptied out and stay vacant for the foreseeable future. Housing policy at work.