Looking to house hack 6+ unit building

Member since 2020 · 1 post · 2 votes

Hi,

We're considering trying to buy a multi unit that's owner occupied (our primary residence) here in nyc. We're handy and we own a few properties in Baltimore so comfortable with tenants. But a few hurdles we're trying to explore here in nyc - most of the properties we're finding are 6+ units. I don't mind rent stabilized / rent control tenants but I know it can really complicate things for purchasing / landlords. We've also never had to navigate a commercial loan. We certainly do not have the capital to be all cash, we need financing. What should we know? What should we be thinking about? Who should we be talking to?

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Ryan Muska

Lender · Saddle Brook, NJ · Member since 2023 · 431 posts · 231 votes

3mo

If it is going to be your primary, you are going to run into a lot of difficulty for financing when it comes to anything more than 4 units.

When it comes to commercial, I'd be very surprised to see someone willing to let you live in a property you are going to buy.

If it gets done, I'd love to know who does it as it seems like a unicorn.

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Ryan Muska
Lender · Saddle Brook, NJ · Member since 2023 · 431 posts · 231 votes
3mo
If it is going to be your primary, you are going to run into a lot of difficulty for financing when it comes to anything more than 4 units.
When it comes to commercial, I'd be very surprised to see someone willing to let you live in a property you are going to buy.
If it gets done, I'd love to know who does it as it seems like a unicorn.
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Abel CurielBusiness Member
Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
3mo
Quote from @Jennifer Young:

Hi,

We're considering trying to buy a multi unit that's owner occupied (our primary residence) here in nyc. We're handy and we own a few properties in Baltimore so comfortable with tenants. But a few hurdles we're trying to explore here in nyc - most of the properties we're finding are 6+ units. I don't mind rent stabilized / rent control tenants but I know it can really complicate things for purchasing / landlords. We've also never had to navigate a commercial loan. We certainly do not have the capital to be all cash, we need financing. What should we know? What should we be thinking about? Who should we be talking to?

Hello Jennifer,

Since most available 6+ unit buildings are rent stabilized or rent controlled, you'll want to gather current rent rolls, 1-2 years of expenses, lease terms for each tenant if available, DSCR paperwork for each building you're looking into.

As far as who to speak with, if income/expense data isn't included in online listings you're viewing I'd recommend requesting data on sites like Crexi, Loopnet, OR go directly to the listing agent (if you don't have a buyer's agent helping you).
Once you have income/expense data, you can speak with lenders regarding financing for that particular property and general financing.

I'd also recommend speaking with a real estate attorney with experience representing buyers of 6+ unit buildings.

I am currently selling multiple 6-unit rent-stabilized buildings in New York and am working closely with an attorney familiar with due diligence on these types of properties. Happy to answer any questions you have.

All the best!

Abel
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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 914 votes
3mo
Quote from @Jennifer Young:

Hi,

We're considering trying to buy a multi unit that's owner occupied (our primary residence) here in nyc. We're handy and we own a few properties in Baltimore so comfortable with tenants. But a few hurdles we're trying to explore here in nyc - most of the properties we're finding are 6+ units. I don't mind rent stabilized / rent control tenants but I know it can really complicate things for purchasing / landlords. We've also never had to navigate a commercial loan. We certainly do not have the capital to be all cash, we need financing. What should we know? What should we be thinking about? Who should we be talking to?

It sounds like you already have a solid foundation with tenant management and ownership experience, so the bigger learning curve will likely be the financing and regulations. Once you move into 5+ units, you're generally dealing with commercial lending, where the property's income often matters more than your personal income, and rent-stabilized units can have a major impact on valuation and future upside. I'd spend time talking with a commercial lender, real estate attorney, and local investor who actively owns similar assets before making offers. If the numbers in NYC start feeling too tight, many investors in your position also look at Midwest markets for larger multifamily opportunities where financing, regulations, and value-add potential can be more straightforward. The key is understanding exactly how the existing rents and regulations affect your business plan before you buy.
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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
3mo
@Jennifer Young
Once you begin to undertake projects that consist of 6 or more units in NYC, you will be moving on to commercial lending, and hence it will be just as important for the cash flow of your property as it is for yourself. On a personal note, I would love to have spent plenty of time understanding rent rolls, stabilized apartments, operating expenses, and local laws, as well as developing a connection with a commercial lender, a lawyer, and a friendly broker before making any offers.
Good luck!
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Mohammed Rahman
Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
3mo
Hi Jennifer,
If you're targeting 6+ units in NYC, I'd start by talking to three people: a commercial lender, a real estate attorney who regularly works on rent stabilized multifamily, and an insurance broker.

The lender will tell you what you can realistically qualify for and what debt coverage ratios they're looking for. The attorney can help you understand any rent stabilization, violations, or compliance issues before you get too far into a deal. The insurance broker is worth talking to early because insurance costs have become a major underwriting factor in NYC.

I'd also ask every seller for the rent roll, T12, and any DHCR records as early as possible. Those documents will tell you a lot about whether the deal is worth pursuing.

Since you've already owned rentals, the biggest adjustment is probably going to be commercial financing and NYC regulations rather than the day-to-day landlord side of things.
I'm a real estate broker based in NYC and Long Island. Happy to share ideas and answer questions. Feel free to reach out anytime, my DMs are always open!
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Vijay FriedmanBusiness Member
Miami, FL · Member since 2026 · 766 posts · 122 votes
3mo
Quote from @Jennifer Young:

Hi,

We're considering trying to buy a multi unit that's owner occupied (our primary residence) here in nyc. We're handy and we own a few properties in Baltimore so comfortable with tenants. But a few hurdles we're trying to explore here in nyc - most of the properties we're finding are 6+ units. I don't mind rent stabilized / rent control tenants but I know it can really complicate things for purchasing / landlords. We've also never had to navigate a commercial loan. We certainly do not have the capital to be all cash, we need financing. What should we know? What should we be thinking about? Who should we be talking to?

@Jennifer Young
Moving from 2–4 units into 6+ units is definitely a different process since the financing is usually underwritten as commercial rather than residential. I'd spend time understanding how lenders evaluate the property's income, expenses, and tenant mix—especially with rent-stabilized units in NYC. Do you already have a specific building in mind, or are you still exploring opportunities?
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Tony Amin
Member since 2026 · 6 posts · 1 vote
2mo
major issue is 6 and + facing much more compliance issue in NYC.
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