"The prevailing theory seems to be that for a period of time, a buyer can extract profits by spending little or nothing on maintenance, then default on the mortgage, ignore the property tax bills and walk away."
"At the end of the building's normal financial life there are peculiar small buyer/owners who are able to own these buildings with little regard to taxes, laws and regulations."
"We all know there are a handful of bad guys who buy these at the end of the line and then disappear to a faraway country."
The purchase of rent-stabilized buildings, even when they are losing money, has become a contentious issue since rent caps were imposed in 2019. Some buyers believe these investments are viable long-term strategies due to discounted prices. However, industry experts warn that many of these buyers lack experience and may not fully grasp the challenges ahead. Smaller transactions at low prices are occurring, but the rationale behind these acquisitions is unclear, especially with ongoing legislative resistance to changing rent laws and the potential for buyers to exploit properties without regard for maintenance or taxes.
Read at therealdeal.com
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