Queens Multifamily – Learning Curve and Insights?

[Maurice W. Evans]

Hi all,

I’m actively exploring a 2–3 unit multifamily in Queens. 

While I’ve managed around 20 rental and Airbnb units in Brooklyn before, this would be my first purchase of a multifamily in NYC. 

I’m comfortable on the operations side, but I’m looking to sharpen my understanding of the financing, deal structure, and local market dynamics specific to small multis here.

For those who’ve purchased recently in NYC

what surprised you most about the process? 

How did you approach underwriting, financing, or partnerships?

I’d also be interested in connecting with others who are working on similar size deals in the boroughs to share notes and possibly explore opportunities together.

Thanks in advance for any perspective.

[Alexis Sostre]

Small multifamily loans in NYC often behave differently than single-family loans. Lenders will scrutinize your personal credit, the property’s cash flow, and local market comps. 

Conventional financing is usually limited to 3–4 unit buildings, so for 2–3 units you can often get traditional mortgages but DSCR or bank loans may have higher rates than what you're used to.

Conventional loans generally do not have prepayment penalties you can refinance or sell without added cost. Most DSCR loans, on the other hand, do have prepayment penalties. This can affect your exit strategy if you plan to refinance or sell early. Make sure to explore financing options that will work for you.

Partnerships can help spread risk, especially if you’re targeting higher-priced assets in Queens.

Focus heavily on net operating income (NOI) and local rent comps. Unlike Brooklyn, some Queens neighborhoods have slower rent growth, so conservative projections are key.

Factor in property taxes, insurance, and any co-op or condo association fees if applicable they can materially affect cash flow.

The process can be more document-heavy than other markets, especially for small multifamily. Lenders may ask for detailed rent rolls, leases, and historical expenses. Timing can be longer, closing in NYC often takes longer than in other regions, even for small buildings (LAWYERS).

I’d be happy to connect and share more insight or discuss potential deal opportunities in Queens or nearby boroughs. Networking with folks targeting similar-sized assets is a great way to see what works and avoid pitfalls.