Multi-Family in Astoria, NY

[Dennis D.]

Hi,

I am new to multi-family housing. I am looking to house hack the property by gaining rental income. I would appreciate any help with some of my questions below.

I have been researching and visiting 2 to 4multi-family properties in Astoria, NY. Most of these properties seemed to be priced around the $1,500,000 range.

I'm really surprised at the poor maintenance of some of these properties. How much would it cost to renovate these properties nowadays? How much lower I can make an offer on these properties, since there will be high renovation costs?

[Dennis D.]

Quote from @Mohammed Rahman:

You're definitely not wrong to be surprised at the condition of some of these Astoria properties. A lot of owners have held them for years, doing the bare minimum maintenance, but now they still want premium prices because demand is strong. Renovation costs in New York City are really high right now. If you're just doing cosmetic work like painting, new floors, fixtures, you're looking at around $40 to $70 per square foot. But if you're doing a full gut renovation — kitchens, bathrooms, electrical, plumbing — it could easily hit $150 to $300 or more per square foot, depending on the quality and surprises you find once you open up walls. For a typical 2-4 family building that's about 2,500 to 3,000 square feet, even light renovations could run over $100,000. A full gut can easily land between $400,000 and $600,000 or more, especially with NYC permit and inspection costs layered on.

When it comes to making an offer, you should absolutely be adjusting based on renovation needs. If the place needs a lot of work, it's fair to come in about 10–20% below asking, especially if you can back it up with actual numbers or contractor estimates. Sellers in Astoria know they have demand on their side, so not everyone will negotiate hard, but if you show you're serious, financially ready, and can close quickly, you might have some leverage. I would definitely recommend bringing a contractor to a second showing once you find a property you're interested in. Never just guess at reno costs in NYC — the unexpected can kill your budget fast.

If you want, I can also help you run a rough offer formula based on after-repair value, renovation estimates, and the rental income you’re targeting. It’ll make it a lot easier to know when to walk away and when to push forward. Let me know.

Hi Mohammed - Thanks for the details! Yes, I would be interested to know how to analyze these types of properties.