Determining Taxes

I’m looking to change my single-family in Central Harlem to a 3 or 4 family. I’ve heard taxes can be very high ($27 K/year) when the number of units goes up to 4. Does anyone have guidance on how much the difference is? I’ve looked at StreetEasy listings and can find a $4M property paying $16K/year, but that might be before reassessment. If not, can a government agency like DOF help? The slide deck they provide talks about the process they use to determine the taxes, but seems to leave me ultimately clueless about what the result would be.

If I can figure this out, it might help me decide whether to convert to three or to four family.

jdsharpe

in Conversion 7 years and 4 months ago

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dorkofwindsor | 7 years and 4 months ago

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Harlem is riddled with people who have been unexpectedly stuck with exactly what resident2 said. Sticker shock to say the least. An old article i remember from when it was becoming an issue: http://www.nytimes.com/2005/02/20/realestate/in-brownstones-taxes-suddenly-rise.html

resident2 | 7 years and 4 months ago

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Just because you can build 4- 8 families, does not mean it is the best use or thing to do.
And if you think $27,000 a year for RE taxes is very high, then stop right now. Do not look at existing four family houses for expected property taxes.
You will be assessed as a completely new building and it is based on what you paid for it, what the construction costs are and the new market value….. you will probably end up around $75,000 – $100,000. There is a reason developers do not build without Tax abatement… this is it.
Stick to a one or two family. And even as a two family be very careful how your plans are filed.
If you want a long term rental building, buy an existing 3 or 4 family & upgrade it. If you are thinking to Condo it (bad idea in my opinion) then speak to a specialist attorney about a J51 or 421 if the area allows for it. The fees alone for filing all this might be as much as $27,000!

jdsharpe

in Conversion 7 years and 4 months ago

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My architect says I can do up to 8 units.

mozeeatupu | 7 years and 4 months ago

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You’re jumping several dozen steps ahead of yourself.
First determine if you your ideas are even feasible because upsizing like that might not be permissible.