152 W 9th Analysis

152 W 9th St, Carroll Gardens, Brooklyn NY 11231 · 3-family walkup · C0 · 2,400 SF · 20×100 lot · R6B · No mortgage · May 2026

Four-Comp Pricing Consensus

22 4th Pl

$3,425,000

$948/SF · 3,612 SF · Excellent · 156 DOM

517 Clinton St

$2,995,000

$832/SF · 3,600 SF · Partial reno · 79 DOM

90 Carroll St

$2,400,000

$960/SF · 2,500 SF · Unrenovated · 20 DOM

152 W 9th (subject)

$2,349–$2,499K

~$979–$1,041/SF · 2,400 SF

Weighted midpoint across all adjusted comps: $2,340,000–$2,490,000 as-is occupied. Recommended list: $2,399,000 occupied · $2,599,000 vacant delivery.

Income Analysis

Current gross rent

$5,000/mo

$60,000/yr · 2 of 3 units

Market gross rent

$9,900/mo

$118,800/yr · all 3 units

Current NOI

$38,700

After $19,500 norm. expenses

Market NOI

$93,360

After $19,500 norm. expenses

Investor Metrics — adjust purchase price

Purchase price$2,399,000

Cap rate

Current rents—

Market rents—

Benchmark3.5–4.5%

Gross rent multiplier

Current rents—

Market rents—

Typical (market)18–22×

DSCR (mkt NOI, 25% dn, 7.25%)

DSCR—

Minimum to qualify≥1.20×

VerdictDoes not qualify

Carroll Gardens 3-families are appreciation plays. DSCR financing will not qualify. Expect conventional bank or portfolio loans underwritten on borrower financials.

Owner-User — Fannie Mae 75% Rental Credit (B3-3.1-08)

For owner-occupied 2–4 unit purchases, Fannie allows 75% of non-owner unit gross rent toward qualifying income. Occupied M2M units: actual lease rate. Vacant units: appraiser Form 1025 market rent. Vacant delivery adds ~$1,050/mo in qualifying offset.

Current lease rents$2,500/unit

Rental income (2 non-owner units)$5,000/mo

Fannie qualifying credit (×75%)$3,750/mo

Est. PITI (20% dn, 6.75%, 30yr)—

Net monthly carry—

Market rents (appraisal)$3,200/unit

Rental income (2 non-owner units)$6,400/mo

Fannie qualifying credit (×75%)$4,800/mo

Est. PITI (20% dn, 6.75%, 30yr)—

Net monthly carry—

Estimated Net Proceeds — Three Tax Scenarios

Background: John relocated to Florida in 2023. Property held as investment/rental since acquisition in 1996 (Realist: Owner Occupied = No). Owner of record per Realist: Anne Mei Sau Lee. 1996 deed shows "Lee John & Anne M" as buyers — verify current deed via ACRIS (Block 382, Lot 22). All tax figures are planning estimates only. A CPA and real estate attorney must be consulted before any transaction.

Tax basis assumptions

Item	Amount	Notes
Original purchase price (1996)	$75,000	ACRIS/deed confirmed
Estimated land value (25%)	$18,750	Non-depreciable
Estimated building value (75%)	$56,250	27.5-yr straight-line
Accumulated depreciation (fully recovered)	($56,250)	Property held >27.5 yrs; verify vs. tax returns
Adjusted cost basis	$18,750	Remaining land value

Depreciation recapture assumes building fully depreciated over 27.5-year recovery. The IRS taxes unrecaptured Section 1250 gain at 25% even if depreciation was never claimed (phantom depreciation rule). Verify actual depreciation claimed on prior returns with CPA.

Sale price$2,399,000

$2,099,000 Recommended: $2,399K occupied $2,799,000

Selling costs: 5% commission + 1.425% NYC transfer tax + 0.4% NYS transfer tax + $4,000 attorney + $14,000 lien payoff est. Cash-for-keys ($15,000 est.) added automatically above $2,499,000 (vacant delivery range).

Scenario 1Investment property — pay tax

Net proceeds (pre-tax)—

Adjusted basis($18,750)

Capital gain—

Fed: dep. recapture (25%)—

Fed: LTCG (20%)—

Fed: NIIT (3.8%)—

NY State non-res. (~9.65%)—

Florida state tax$0

Total taxes—

Net after tax—

Scenario 21031 Exchange — defer all

Net proceeds (pre-tax)—

Adjusted basis($18,750)

Capital gain—

All federal taxesDeferred

NY State taxesDeferred

Florida state tax$0

QI (Qualified Intermediary) fees($2,000)

45-day ID / 180-day close windowRequired

QI engaged before closing?MUST be pre-arranged

Total taxes paid now$0

Net to reinvest—

vs. Scenario 1: — more investable capital. Gain is deferred, not eliminated — it carries into replacement property basis.

Scenario 3Section 121 — family member

Net proceeds (pre-tax)—

Adjusted basis($18,750)

Capital gain—

Section 121 exclusion (max, est.)—

Taxable gain after exclusion—

Fed: dep. recapture (25%)—

Fed: LTCG (20%)—

Fed: NIIT (3.8%)—

NY State non-res. (~9.65%)—

Total taxes—

Net after tax—

vs. Scenario 1: saves —. Requires Anne's genuine primary residency documentation. Heavy caveats apply.

Scenario notes & requirements

Scenario 1 — Investment property: John is a Florida resident. NY State taxes non-residents on gains from NY real property (Form IT-2663 withholding at closing). Federal LTCG 20% for high-income filers; NIIT 3.8% applies. FL: no state income tax. NYC: does not tax non-residents. Depreciation recapture at 25% applies even if depreciation was never claimed on tax returns (IRS phantom depreciation rule).

Scenario 2 — 1031 Exchange: Strongest option for capital preservation. Defers 100% of taxes. Requirements: (1) Qualified Intermediary must be engaged BEFORE closing — cannot be retroactive. (2) Replacement property identified within 45 days. (3) Replacement closed within 180 days. (4) Equal or greater equity and value must be reinvested to defer the full gain. John’s wife is a Miami-based realtor — natural pipeline for Florida replacement property. John has executed multiple prior 1031 exchanges. Gain deferred, not eliminated — carries into replacement property’s adjusted basis.

Scenario 3 — Section 121 via family member: Anne Mei Sau Lee (owner of record) satisfies the ownership test (deed since 1996). To qualify, she must also satisfy the use test: the property must have been her PRIMARY RESIDENCE for 2+ of the last 5 years. Current evidence does not clearly support this (Realist: Owner Occupied = No; tax billing at 351 Grand St, Manhattan, not at subject). Even if use test is met, the non-qualified use rule (IRC Sec. 121(b)(5), effective 2009) prorates the exclusion by the rental-use fraction. This analysis uses a favorable assumption of 4 years primary residence out of 17 post-2008 years, yielding a maximum exclusion of ~$250,000 and estimated savings of ~$83,000 vs. Scenario 1. Depreciation recapture ($14,063) is NEVER excludable under Section 121. This option must reflect genuine primary residency — not a manufactured tax strategy. Requires CPA and real estate attorney sign-off and supporting documentation (utility bills, voter registration, IRS filing history at the property address).

Side-by-side net proceeds comparison

Scenario	$2,399,000 (occupied)	$2,599,000 (vacant)	Difference from 1031
Scenario 1 — pay capital gains	—	—	—
Scenario 2 — 1031 exchange (reinvest)	—	—	Baseline
Scenario 3 — Section 121 best case	—	—	—

Asset acquired for $75,000 in October 1996. All scenarios represent a ~29–32× gross return before 29 years of collected rental income.

Financing Scenarios at Selected Price

Buyer type	Down payment	Monthly P&I	Rental offset	Net carry/mo
Owner-occ 15% dn · 6.75% · 30yr	—	—	$3,750 curr	—
Owner-occ 20% dn · 6.75% · 30yr	—	—	$3,750 curr	—
Owner-occ 20% dn + market rents	—	—	$4,800 mkt	—
Investor 25% dn · 7.25% · 30yr	—	—	None	—
Investor 30% dn · 7.25% · 30yr	—	—	None	—

Owner-occ PITI includes normalized taxes ($9,000/yr → $750/mo) + insurance ($292/mo). Investor net carry = P&I only. For illustration only — verify with lender.

Pre-Listing Action Items

ACRIS — tax lien status: Pull Block 382, Lot 22. Verify NYCTL 2019-A Trust lien (CRFN 2019000353918) has been discharged. Lis Pendens filed 9/21/2020. Estimated payoff ~$13,000–$15,000 if still active.

ACRIS — deed ownership: Confirm who is currently on deed. Any transfer of ownership interest to a family member for Section 121 purposes requires CPA and attorney guidance well in advance of any listing.

Illegal kitchen — Unit 1: Stove removal and gas cap required before listing and before mortgage appraisal. Coordinate during John's May/June NYC visit.

Tax rebase: Current taxes $2,675/yr are artificially suppressed under Tax Class 1 cap. Will normalize to $8,500–$10,000/yr post-sale. All analysis uses normalized $9,000/yr.

1031 QI engagement: If John pursues a 1031 exchange, Qualified Intermediary must be engaged BEFORE closing. Raise this in your first meeting with him.

Tenant rent verification: Confirm actual M2M amounts in writing before listing. Tenants' cooperation needed for showings.

DISCLAIMER: This analysis is prepared for discussion and planning purposes only. Tax estimates are approximations based on assumed rates and schedules. Actual liability depends on John's complete income picture, filing status, actual depreciation claimed, and current tax law. Nothing herein constitutes tax, legal, or investment advice. Consult a licensed CPA and real estate attorney before any transaction. Comp data from OneKey MLS and public records; deemed reliable but not guaranteed. Prepared by Hung Lam, Brooklyn New York MLS. May 2026.

Property Analysis

152 W 9th Analysis