Conversion
I have a three family house, where I reside along with two tenants. I am interested in taking over one of the rental apartments, so that I will have a duplex that can accommodate a growing family. The C of O is a three family. Forgive my ignorance, but do I have to change it…
I have a three family house, where I reside along with two tenants. I am interested in taking over one of the rental apartments, so that I will have a duplex that can accommodate a growing family. The C of O is a three family. Forgive my ignorance, but do I have to change it to a two family, especially if I plan on converting it back to a three family at some point (say when I retire and need additional rental income, which will, admittedly, be many years from now). Thanks for the advice!
With regard to C of O.
Has anyone converted from 2 to 3 family. If so, is this a nightmare? What does it entail? I think I was told that I would need to install a sprinkler system or put a fire escape at back. What else is involved? Cost, etc?
Many thanks,
Kate
However if you ever need to sell your C of O 3 family house which you’ve used a 2 family, and the buyer’s bank’s appraiser only finds two kitchens then you might have a problem selling.
If you reduce occupancy levels, you don’t have to change your c of o. It is only when you increase that your c of o need be changed.
BrooklynGuy – I hear that Charlie Rangel might know the information you require! 😉
On this topic, are there any issues with buying a second apartment in one’s coop to use in the manner suggested above (leave the apts as is, but use the one upstairs for bedrooms and the one downstairs for living area)? Obviously it would be annoying to have to leave one apartment, walk through the common area and enter another apartment in order to get from your living room to your bedroom, but is that the only problem with an arrangement like this?
From what I have read, changing a CofO is going to get your new assessment at real value and taxes will probably be quite high.
Keep the way it is and limited on how much taxes can go up per year.
Don’t need a CofO the use 3 as 2 — but problem if trying to use a 2 as a 3 family.
Tax Class 1 includes One-, two-, and three-family homes, so no tax advantages associated with converting from three- to two- (you would change to tax class 2, and possibly pay more property tax by converting to four-family).
I have lived in 2 different houses with a C of O for 2 family that I used as a 1 family – no reason for it to be an issue. If you want to end up with a three family at some point, save yourself the trouble and expense and don’t change anything.
If you’re not undertaking renovations that alter the arrangement of rooms, and if you are simply using two apartments as a duplex, you don’t need to change the C of O. But there are tax advantages and code advantages associated with converting the building to a two family.