2-family vs single?
Wondering what the benefit is of owning a LEGAL two-family versus a single-family that is set up as a two. Is a legal two worth more when it comes time to sell? Anyone know?
Wondering what the benefit is of owning a LEGAL two-family versus a single-family that is set up as a two. Is a legal two worth more when it comes time to sell? Anyone know?
It’s not necessary the case: You should always check with an Architect, lawyer, or your insurance company BUT, do you mean legal as in having a C of O that says two Family compared to a (grandfathered) house that never had a C of O,(probably most brownstones in Brooklyn) but is up to code for multifamily use?
I converted a 3 story 1 to a legal 2 in Carroll Gardens about 5 years ago. It didn’t cost anywhere near $35K or 6 months. I did it at the same time I was building a 2 story addition so all my fees, approvals and inspections included both simultaneously.
There is very little difference in the building code between a 1 and 2 family so there was very little work to be done for the conversion. If I remember correctly, I had to change the original wood roof access ladder to steel and add an exhaust vent to the rental kitchen – carbon filtered recirculating was fine – and that was about it. The battery operated smoke and CO detectors were acceptable.
The architect’s fee for both was around 10K (included plans/approvals for addition). Took about 3 months for plan approval including Landmarks, about a month to schedule an inspection (they always find something) and about a month to reschedule the inspection. I had the first inspection in June and had the 2family C of O in August.
I would NOT recommend my architect. He had no integrity and I was close to reporting him to the NYS licensing agency.
Two links below re: illegal conversions and amending a CO. Consult an architect, and make sure they come well-recommended and with a good track record for this kind of work. Much more to the issue than what you’ll read on these links: http://www.randpc.com/ask/ate_CofO.html
http://www.nyc.gov/html/dob/downloads/pdf/dob_Illegal.pdf
Involves changing the c of o, I was told 6 months and 35k. And that was going from 2 to 1. The other way might be more.
Thanks, all. I NEVER thought of the insurance issues that could arise.
If we were to go through the process of converting to a legal two family, how long does that take, approximately? I have no idea how much it costs to hire an architect to draw plans and what the other related steps and costs are.
The best is a legal 2fam used as a 1fam, you can’t legally do the reverse. That is, if you have the plumbing set up for a 2fam. That’s why I did in my reno, kept it as a 2fam, using as a 1fam, with plumbing so it can be converted back if someone wants to split the house and use the income.
Using a legal 1-family as a 2-family is a problem and is illegal, as already noted. I don’t think using a legal 2 as a single family should be a problem.
What’s worth more when it comes time to sell – depends on the market. For some property the best and highest use is as a single family, if that’s what there’s demand for. In other cases buyers want the income & a 2 family can be worth more.
I agree with Mr. Dahill. Check with your insurer about the implications of using a building in a way not reflected on the C of O. Ed Kopel ARchitects, PC
Mine is a 2-family used as one. I’m told the taxes would be no different if I re-registered it as a single & that it’ll be worth more at resale if it stays a two.