Single vs Multi-Family
I would like to know if there’s any premium or discount on a multi-family brownstone compare to a single family. I am in the process of shopping for a brownstone but was a bit confused with comparable valuation. Would like to hear your thoughts. Thanks
I would like to know if there’s any premium or discount on a multi-family brownstone compare to a single family. I am in the process of shopping for a brownstone but was a bit confused with comparable valuation. Would like to hear your thoughts. Thanks
No
Thanks for all the thoughtful comments. I tried to look up property records around the neighborhood but ran into a wide range of prices due to the interior conditions. Simply said, assume the location, interior condition and sq footage constant, should a single family priced higher than a 2,3 or 4 familes?
i’m not sure you’ll find any rule of thumb in regards to single vs. multi family. condition & location are going to play a much larger role in valuation. the only way to really figure it out would be to find similar houses in the same neighborhood with different configurations and see what they sold for….
however, and this was important when my wife and i bought, a multi family home means that your mortgage is offset by rental income. a $1 million single family was way beyond our means, but the same price for a 3 family means a managable monthly payment. it is a lot more responsibility in ways, but we wouldn’t be homeonwers without the rental income.
Cute poem Busta. I have no idea what it’s about or what you’re trying to tell us though. You should try an English course. Run-on sentences, incorrect grammar, misplaced punctuation and incorrect capitalization of “City”.
I’m not an expert or anything, but when we were shopping around for our brownstone, I noticed multi family homes seemed to be priced higher. You can have a tenant in a multi family house but you can’t in a single family, however you can have 1 family in a 2 or 3 family house. The use is more flexible for a multi family.
As for “premiums” do you mean the price of the home or insurance? If it’s insurance, then a multi family would likely be higher as the tenant is a bit of a wild card for the insurance company.
I can never really figure out if the price per square foot is really cheaper on a multifamily vs. a single family. I think it really depends on how many units the building has and how much it makes sense to convert it to a single family. For example there are many brownstones that would make great 1 family houses but are used as two families, i don’t think those get much of a discount for being a two family. But there are other buildings i have seen that really couldn’t be converted into single family houses that people would want (its hard to explain but if you saw them you would understand) and i think those do get a bit of a discount since they are more investment property than strictly residential property. That said when you look at the building in terms of cost of ownership a multifamily is usually cheaper. In many instances multifamilies can provide a rather substantial tax savings which makes their carry considerably cheaper than their single family alternatives (even though the price per square foot might be the same).
in a high end neighborhood I believe the premium is placed on single family properties. There are people who don’t need the money that comes from a rental and don’t want to deal with tenants. In the nicer parts of brownstone brooklyn there are not many single families so that ones that do sell sell for a bit more than a comparable 2 or 3 fam.
In the not so high end neighborhoods the extra unit allows people to afford the home in the first place and not having it may lead to a lower price. At the same time there are not so many of those high end buyers who don’t care about the extra income and will pay a premium to have a single family.
I think in general, across the country, the premium is given to single family.
For health you have the doctor
for pipes you have the plumber
so asking here for what you need
could not be any dumber
You should try another course
the one you’re on is shitty!
I recommend, indeed endorse!
you try asking the City.