C of O question

Hmm… without knowing further, my intuition is keep as 2 family and do an alternation 2 to lower expenses. Taxes maybe higher in 2 family but usually has a better resale value as the person can configure as 1 or 2 family as opposed to converting back a 1 family to 2 is more hassles. downsizing easy, upsizing, not so much. Also, alteration 1 while 1 family should have lower taxes you’re also probably making the home much nicer so the taxes may be similar or more after alterations. Keep it simple and file alteration 2\. You can look further into with a specialist as each circumstance is different but usually this ends up being the case.

Takeashi

in Building Code 13 years and 7 months ago

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bkvfx | 13 years and 7 months ago

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I’m looking for some advice regarding a certificate of occupancy.    I am getting ready to do a renovation on a four-story two family house.  right now it is a double duplex.  as owners, we are planning to take over the whole house and was wondering if we should change the C of O.  Initially we were planning to take over a one floor and create a floor thru garden apartment with a small, inexpensive kitchenette that we would put in as part of the reno.   this would allow us to keep the 2 family status and not have change the C of O.  however, because we are reconfiguring the 2 duplexes into a triplex and floor thru, as well as removing a kitchen, we plan on filing an alteration 1\.   my understanding is that once we file for the alt 1, changing the C of O isn’t such a big deal.     this is my first big renovation and I’m not 100% sure of the facts, but my basic question is this:   all things being equal, am I better off with a 1 family or 2 family C of O.   I think ultimately it’s a question of resale value.   we’re not planning on selling anytime soon, but I just want to do what’s best in case that occors. thanks

jockdeboeraia | 13 years and 7 months ago

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The Alt I is requiring the new C of O. If you are going to keep it a 2, there are ways to do it as an Alt II. If you don’t have an archiect, give me a call.

AnArchitect | 13 years and 7 months ago

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In general, real estate is valued as a multiple of the property’s cash flow, and therefore, keeping it a two family is a better option from a resale point of view..  This should not mean that your interior layout, however, needs to feel like a two family if you are occupying the entire house. In my opinion, a 3 fixture powder room with a kitchenette in the garden level would not feel like redundant or unecessary spaces in a 1 family house.  We’re architects and engineers and can show you an exact project in size and type that we are currently undertaking: www.agenciegroup.com

Bklnite | 13 years and 7 months ago

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“In general, real estate is valued as a multiple of the property’s cash flow” – true for investment property, not so much for homes purchased as primary residence. No hard & fast rule so look at comps …  similar four-story buildings that are 1- and 2- family, or get an opinion from a broker. In some markets/neighborhoods 1- families are valued higher. In others people like the income and flexibility of 2- families.

bk_homeslice | 13 years and 7 months ago

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I would most likely keep it as a 2 family on the C of O for the re-sale, but there may be a difference in how much you would pay in taxes you would pay for a 1 as opposed to a 2 family.  I was curious…my wife and I are also going to be restoring a townhouse, who did you pick for your renovations?