SaidMaybeBuyThisHouse.com
218 Lewis Ave Bed-Stuy, Brooklyn
Two-family brownstone. Full gut renovation via rehab loan. $305K out of pocket. Negative carry until you build out the FAR or rents catch up.
$1,300,000
$750K reno
5.22% rate
$305K cash in
2,400 sf · 2,000 sf lot
Built 1899
At a Glance
—
Monthly cash flow (both units rented)
—
Monthly housing cost (house hack)
Closing Costs
With Gabe as buyer's agent. Commission savings: ~$32,500.
| Mansion tax (1%) | $13,000 |
| Mortgage recording tax (1.925% on $1.82M) | $35,035 |
| Title insurance | $8,500 |
| Attorney | $4,000 |
| Origination (0.5%) | $9,100 |
| Appraisal, inspection, recording | $5,000 |
| Total closing | $74,635 |
Rehab Loan vs. Cash-Heavy
| Cash-Heavy | Rehab Loan |
|---|
| Down payment (10%) | $130,000 | $130,000 |
| Reno out-of-pocket | $750,000 | $100,000 |
| Reno financed | $0 | $650,000 |
| Closing costs | $74,635 | $74,635 |
| Total cash in | $954,635 | $304,635 |
| Total loan | $1,170,000 | $1,820,000 |
| Monthly P&I | — | — |
| Cash flow @ $10K rent | — | — |
| Capital preserved | $0 | $650,000 |
The rehab loan adds ~$3,600/mo to the mortgage but frees $650K. At 8% elsewhere, that $650K produces $52K/year — covering the ~$15K negative annual carry with $37K left over.
Loan Structure
Phase 1: Acquisition + Construction
| Loan type | HomeStyle / Portfolio |
| Purchase | $1,300,000 |
| Reno financed | $650,000 |
| Said's reno cash | $100,000 |
| Down (10%) | $130,000 |
| Closing | $74,635 |
Phase 2: Permanent Mortgage
| Loan | $1,820,000 |
| Rate | 5.22% |
| Term | 30 yr |
| Monthly P&I | — |
| Cash from Said | $304,635 |
FHA 203(k) caps ~$1.15M for a 2-unit in NYC. This requires a Fannie Mae HomeStyle or portfolio product. The $100K cash covers overruns the bank won't finance.
Rate Advantage
| Market rate (6.22%) | — |
| Said's rate (5.22%) | — |
| Monthly savings | — |
$750K Renovation Budget
| Structural / foundation | $100,000 |
| Plumbing & electrical | $150,000 |
| Kitchens (x2) | $120,000 |
| Bathrooms (x2–3) | $90,000 |
| Floors, walls, finishes | $120,000 |
| HVAC, windows, roof | $100,000 |
| Permits & contingency | $70,000 |
| Total | $750,000 |
1899 building. Realistic range is $750K–$1M. The $100K cash contingency helps. Anything beyond that means more capital or a loan mod.
Monthly Cash Flow
Both Units Rented
| Gross rent | $10,000 |
| Mortgage | — |
| Tax / ins / maint | — |
| Vacancy (5%) | $500 |
| Net | — |
House Hack (live in 1, rent 1)
| Rental income | $5,000 |
| Mortgage | — |
| Tax / ins / maint | — |
| Housing cost | — |
Comparable 3BR brownstone rental in Bed-Stuy: $4,500–$5,500/mo.
Rent Comps
| Comp | Type | Rent | Condition |
|---|
| Lewis Ave area | 3BR/1BA | $3,000–3,500 | Unrenovated |
| Lewis Ave area | 3BR/1BA | $4,500–5,500 | Renovated, W/D |
| Nearby brownstone | 3BR/2BA | $5,000–6,000 | Garden, yard |
| Fulton St new build | 2BR/1BA | $4,000–4,800 | Modern |
Stress Test
| Scenario | Rent | Cash Flow | Annual |
|---|
| Upside | $12,000 | — | — |
| Target | $10,000 | — | — |
| Moderate miss | $9,000 | — | — |
| Conservative | $8,000 | — | — |
| Worst case | $7,000 | — | — |
Reno overrun (+$150K): adds ~$825/mo to mortgage if financed.
FAR Analysis — Reality Check
The zoning is R6B (contextual brownstone district), not R6. That caps the math.
Zoning Envelope
| Lot | 2,000 sf |
| Current building | 2,400 sf (1.2 FAR) |
| R6B max | 4,000 sf (2.0 FAR) |
| With City of Yes UAP (+20%) | 4,800 sf (2.4 FAR) |
| Unused FAR (R6B) | +1,600 sf |
Max height: 50 ft. Lot coverage: 60% (interior). ADUs prohibited in row houses under City of Yes.
What 1,600 sf Gets You
| Rooftop addition (~800 sf) | $560–600K |
| Rear extension (~800 sf) | $560–600K |
| Full 1,600 sf buildout | $1.1–1.2M |
| Construction cost/sf | $700–750 |
Air rights value if sold: $100–200/sf = $160K–$320K. Hard to transact in brownstone context.
Does a 3rd Unit Pencil?
| Scenario | Build Cost | Addl Mortgage | Unit Rent | Net Impact |
|---|
| Rooftop 1BR (~800 sf) | $560,000 | — | $2,800/mo | — |
| Break-even rent needed | | — |
At current construction costs ($700+/sf), the addition mortgage exceeds the rent it produces. The 3rd unit doesn't improve cash flow — it makes it worse by ~$500/mo. The unused FAR has value as optionality (future buildout when rents rise or costs fall) and as a pricing premium in a sale, but it's not a near-term cash flow fix. The UAP bonus (2.4 FAR) requires permanently affordable units at 60% AMI, which further limits income potential.
10-Year Projection
Capital efficiency: the $650K freed by the rehab loan earns ~$52K/yr at 8%. That covers the negative carry with $37K to spare.
Property Value at 3.5%/Year
Sale Comps — Renovated 2-Family
| Address | Type | Asking | $/sf |
|---|
| 521 Monroe St | 2-Fam Brownstone | $2,825,000 | ~$850 |
| 681 Decatur St | 2-Fam Townhouse | $2,199,995 | ~$730 |
| 757 Putnam Ave | 2-Fam Townhouse | $3,195,000 | ~$900 |
| 218 Lewis (all-in) | 2-Family | $2,050,000 | $854 |
Comparison A
263 Hancock St Bed-Stuy
Triplex brownstone · 3 units · Built 1891 · $2,400,000 · 159 days on market
Financing (rehab loan, 10% down)
| Purchase | $2,400,000 |
| Renovation estimate | $500,000 |
| Down (10%) | $240,000 |
| Reno cash (Said's) | $100,000 |
| Closing costs (est.) | — |
| Total cash in | — |
| Total loan | — |
| Monthly P&I (5.22%) | — |
Cash Flow Scenarios
| Scenario | Rent | Cash Flow | Annual |
|---|
| 3 units, post-reno market | — | — | — |
| 3 units, conservative | — | — | — |
| House hack (live in 1, rent 2) | — | — | — |
Triplex with original detail. 159 days on market at $2.4M (previously listed at $2.3M). The higher price point means more cash in and a bigger loan, but 3 units means better rent-to-mortgage ratio. Needs renovation — original condition with period woodwork throughout. Major plus: it's already zoned and configured as 3 legal units.
Comparison B
902 Lafayette Ave Bed-Stuy
Fully renovated 2-family · 5 bed / 3 bath · 2,379 sf · Built 1899 · $1,870,000
Garden unit: 1BR/1BA. Upper duplex: 4BR/2BA spanning 2nd and 3rd floors. Central A/C, baseboard heat, private backyard. Fully renovated — exposed brick, high ceilings, tile floors, updated kitchens and baths. Near JMZ. Sold for $456K in 2020, renovated, now listed at $1.87M (down from $2M).
Financing (standard purchase, 10% down)
| Purchase | $1,870,000 |
| Down (10%) | $187,000 |
| Closing costs (est.) | — |
| Total cash in | — |
| Loan | — |
| Monthly P&I (5.22%) | — |
Cash Flow Scenarios
| Scenario | Rent | Cash Flow | Annual |
|---|
| Both units, market rate | — | — | — |
| Both units, conservative | — | — | — |
| House hack (live upper, rent garden) | — | — | — |
Move-in-ready, no renovation risk. Sold for $456K in 2020 — someone already did the work and is selling at a markup. The $786/sf is at the top of the Bed-Stuy comp range. Cash flow will be tight on a 2-family at $1.87M, but there's no construction risk, no timeline, no contractor drama. You're buying certainty.
Head to Head
| 218 Lewis | 263 Hancock | 902 Lafayette |
|---|
| Price | $1,300,000 | $2,400,000 | $1,870,000 |
| Units | 2 | 3 | 2 |
| Condition | Gut reno needed | Reno needed | Fully renovated |
| Reno budget | $750,000 | $500,000 | $0 |
| Total cash in | — | — | — |
| Monthly P&I | — | — | — |
| Target rent | $10,000 | — | — |
| Cash flow | — | — | — |
| FAR upside (R6B) | +1,600 sf | TBD | Limited |
| Risk | High | Medium-High | Low |
| 10-yr wealth | — | — | — |
Bottom Line
218 Lewis — the value-add play
$305K in, negative carry, $1M+ in 10-year wealth. R6B zoning limits FAR buildout to 1,600 sf — not enough to fix the cash flow at current construction costs. The upside is appreciation and equity paydown, not income. High execution risk on a 126-year-old gut reno.
263 Hancock — the middle ground
3-unit triplex with original brownstone character. Higher price tag ($2.4M) means more cash required and a bigger loan. But 3 legal units improve the rent-to-mortgage math. Still needs renovation — not turnkey.
902 Lafayette — the sure thing
Fully renovated, move-in-ready. No construction timeline, no contractor risk, no unknowns. The premium ($786/sf) is the price of certainty. Cash flow will be tight but the asset is ready to produce income from day one.
SaidMaybeBuyThisHouse.com · March 2026 · Public data, estimates may vary. Not financial advice.
