Assistance needed on Multi-Family Structuring in NYC

Lender · New York City · Member since 2026 · 17 posts · 8 votes

4mo

this deal doesn’t work at the current price unless everything goes perfectly, which is not how you want to invest, especially in a market like Queens. You’re buying at thin margins with high leverage, relying on Airbnb-style income that’s operationally intensive and legally uncertain, and hoping future upside (like a basement conversion) materializes. Even in the best case, you’re likely negative monthly, and in more realistic scenarios, you’re subsidizing the property. If you pursue it, it needs to be at a significantly lower price (closer to ~$1.05M) and underwritten as a long-term rental first, not a short-term play, otherwise, you’re taking on too much risk for too little reward.

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Jasper JurmanPro Member

Real Estate Agent · New York City · Member since 2023 · 16 posts · 6 votes

4mo

Hi Ricardo,

This deal does not make sense from an investment stand point. Your realtor should have your best interest and should not be pressuring you to take it at the listing price if that isn't what makes sense. With a 5% down payment on a turn key two family that is losing money every month it puts you in a very vulnerable position. Because it is turn key you likely will not have any equity in the property hence being over leveraged and if it losses money every month it is not an asset, it is a liability.

There are much better deals out there. Always stick to what the numbers tell you, at the end of the day you are the one who is stuck with the property (not the realtor or the seller) so make sure it works for you.

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Abel CurielBusiness Member

Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes

4mo

Quote from @Ricardo Llanos:

Hi all,

I'm considering purchasing a legal 2-family home in my hometown of Queens, New York and I'm struggling to see the most ideal path forward.

Asking price: $1.2m
Preapproved $1.2m
Down payment: $60,000 (5% down)
Closing cost: Assuming $10-15k?
All in to close: +- $75k.
Est Property Taxes: $525/month
Home insurance: $350/month
Estimated monthly cost: $8,811.

The current owner has both units rented as Medium Term rentals (more than 30 days which is allowable in NYC) and is generated around $90k annually. Last year she did $75k and this year project to be at $100k. When I did the walkthrough I saw the guests in there. She wants to sell because her family has grown and no longer want to deal with the airbnb side of things. Shes an airbnb Superhost and has the same nomadic travelers booking the units recurringly. She even offered to transfer the airbnb listing, if possible. I would mimic her same set up and worst case scenario rent at market rates which would put me at a loss since the max I could get in long term tenant rent is 7-8k. The house is in great shape, truly turnkey, and I can continue the same process from day one. I've had some experience with Airbnb/vrbo with a property I have in Pocono, Pennsylvannia and it was a headache to manage the short term rental side, and I'm rented that one long term.

Opportunity I see; they have a basement that has not been furnished and can be used for rent but it is only accesible through the first floor unit. I would need to higher an engineer/architech to create a new pathway in the furnance into the basement for an ADU (NYC Ancillary Dwelling Unit) or to convert the house in a 3-family via a legalized basement. This is a follow up investment will likely take me 1-2 years of cash build up from my day job and rental income, or through NYC grants.

Currently, I'm explore a Down Payment Assistance program to help me put more money down so I can decrease the monthly pricinpal + interest. I read on the SONYMA (state of NY housing site) that I would have to use an affliated mortgage bank, which my current mortgage bank is not a current affliated. I've also come across programs form SONMY such as Repayable Second Lien (RSL), or Down Payment Assistance Loan (DPAL) that would help me since I don't have the full downpayment ready today.

My questions are:
- On the surface level, is this a good deal? The seller said she's has a few offers already but she did not like 1, since 1 of them wanted to do a 3% down and that the person was inbetween jobs. Another person came in as all-cash offer but at a discount and the owner currently has airbnb bookings into mid August 2026 and needs to realize the booking.

- Also, I'm trying to find the right guidance from someone who has acquired a down payment assitance grant or deffered balance payment or a second lien loan on the mortgage. This is something I need to lower the downpayment.

- This is a very modern looking interior and exterior and I feel like it can be sold soon. I also feel like my realtor (who contact me from redfin i think) just wants to get the deal done and is just playing telefon with the owner. The owner is also a realtor and is selling the house on her behalf.

- I'm considering an offer at 1.1m, not sure if I should go lower but my realtor says we should go in with something strong to have better chances (i.e agreeing to the asking, and higher down payment and high security deposit)

Hello Ricardo!

Your closing costs will likely be in the $40-60K range. Bank closing costs are usually 5-6% of the loan amount, which at a $1.1M Purchase Price and $60K down would be about $52,000.

Also, the conversion from 2 to 3-units can be costly. Oftentimes it will be about $1,500-2,000 just for an architect and/or structural engineer to visit a property. Building plans will be in the low 5-figure range, and construction could be in the high 5-figure to 6-figure range. If this means a (low) conversion estimate of about $200-250K, you'll have to review local 3-family comparable sales to be sure ARV makes sense.

My questions are:
- On the surface level, is this a good deal? The seller said she's has a few offers already but she did not like 1, since 1 of them wanted to do a 3% down and that the person was inbetween jobs. Another person came in as all-cash offer but at a discount and the owner currently has airbnb bookings into mid August 2026 and needs to realize the booking.

Doesn't seem to be a very strong deal. Regarding their current offers, 1 is from a potentially unqualified buyer and the other is a presumably low-ball cash offer. Neither 'offer' justify you going in at full asking price UNLESS the property is already listed below market value which doesn't seem to be the case.

- Also, I'm trying to find the right guidance from someone who has acquired a down payment assitance grant or deffered balance payment or a second lien loan on the mortgage. This is something I need to lower the downpayment.
Have you connected with different lenders? An investor-friendly lender will often have different loan products to choose from and a strong connection with investors who will buy the loan post-closing. Larger banks like BOA offer down payment assistance and competitive grant programs.

- This is a very modern looking interior and exterior and I feel like it can be sold soon. I also feel like my realtor (who contact me from redfin i think) just wants to get the deal done and is just playing telefon with the owner. The owner is also a realtor and is selling the house on her behalf.

Did you sign an exclusive agreement to work with the redfin realtor? If so, you want to be mindful of your obligation to pay them a commission. If you ultimately feel you aren't getting the best representation, NYS law allows you to change representation at any stage in the acquisition process BUT the commission could still be your responsibility.

- I'm considering an offer at 1.1m, not sure if I should go lower but my realtor says we should go in with something strong to have better chances (i.e agreeing to the asking, and higher down payment and high security deposit)

What do the comps show?? Do they support a 1.2, or 1.1, or 990K offer?
Also, price is not the only negotiable term here. Closing date is also negotiable. For example, if you offer today and go under contract in mid-May, you might close sometime in mid-August. This means you'll hypothetically be entering the mid-term rental space during the Fall and losing out on Summer demand/income. Less desirable to close and, therefore, could justify a lower offer.

All the best!

Abel

REbuild Team - eXp Realty5234 Reviews

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Vijay FriedmanBusiness Member

Miami, FL · Member since 2026 · 766 posts · 122 votes

4mo

Quote from @Ricardo Llanos:

Hi all,

I'm considering purchasing a legal 2-family home in my hometown of Queens, New York and I'm struggling to see the most ideal path forward.

Asking price: $1.2m
Preapproved $1.2m
Down payment: $60,000 (5% down)
Closing cost: Assuming $10-15k?
All in to close: +- $75k.
Est Property Taxes: $525/month
Home insurance: $350/month
Estimated monthly cost: $8,811.

The current owner has both units rented as Medium Term rentals (more than 30 days which is allowable in NYC) and is generated around $90k annually. Last year she did $75k and this year project to be at $100k. When I did the walkthrough I saw the guests in there. She wants to sell because her family has grown and no longer want to deal with the airbnb side of things. Shes an airbnb Superhost and has the same nomadic travelers booking the units recurringly. She even offered to transfer the airbnb listing, if possible. I would mimic her same set up and worst case scenario rent at market rates which would put me at a loss since the max I could get in long term tenant rent is 7-8k. The house is in great shape, truly turnkey, and I can continue the same process from day one. I've had some experience with Airbnb/vrbo with a property I have in Pocono, Pennsylvannia and it was a headache to manage the short term rental side, and I'm rented that one long term.

Opportunity I see; they have a basement that has not been furnished and can be used for rent but it is only accesible through the first floor unit. I would need to higher an engineer/architech to create a new pathway in the furnance into the basement for an ADU (NYC Ancillary Dwelling Unit) or to convert the house in a 3-family via a legalized basement. This is a follow up investment will likely take me 1-2 years of cash build up from my day job and rental income, or through NYC grants.

Currently, I'm explore a Down Payment Assistance program to help me put more money down so I can decrease the monthly pricinpal + interest. I read on the SONYMA (state of NY housing site) that I would have to use an affliated mortgage bank, which my current mortgage bank is not a current affliated. I've also come across programs form SONMY such as Repayable Second Lien (RSL), or Down Payment Assistance Loan (DPAL) that would help me since I don't have the full downpayment ready today.

My questions are:
- On the surface level, is this a good deal? The seller said she's has a few offers already but she did not like 1, since 1 of them wanted to do a 3% down and that the person was inbetween jobs. Another person came in as all-cash offer but at a discount and the owner currently has airbnb bookings into mid August 2026 and needs to realize the booking.

- Also, I'm trying to find the right guidance from someone who has acquired a down payment assitance grant or deffered balance payment or a second lien loan on the mortgage. This is something I need to lower the downpayment.

- This is a very modern looking interior and exterior and I feel like it can be sold soon. I also feel like my realtor (who contact me from redfin i think) just wants to get the deal done and is just playing telefon with the owner. The owner is also a realtor and is selling the house on her behalf.

- I'm considering an offer at 1.1m, not sure if I should go lower but my realtor says we should go in with something strong to have better chances (i.e agreeing to the asking, and higher down payment and high security deposit)

@Ricardo Llanos

This is a strong opportunity to analyze carefully, but I’d be cautious about relying too heavily on the current medium-term rental income unless you can verify it with actual booking history, deposits, expenses, vacancy, cleaning costs, management time, and local compliance.

At a $1.2M price with only 5% down, the monthly payment looks tight if your fallback long-term rent is around $7K–$8K against an estimated payment near $8.8K. The deal may still make sense if you plan to owner-occupy, build equity, and later add value through the basement/ADU route, but I'd want the deal to survive under conservative assumptions.

For the down payment assistance or second lien route, I’d confirm early whether the program allows 2-family properties, owner-occupied rental income, subordinate financing, and whether you must use a specific lender. I’d also be careful taking your realtor’s advice at face value if they are pushing speed over numbers.

Personally, I'd run three scenarios: current MTR income, conservative long-term rent, and future ADU/basement upside. If only the best-case scenario works, I'd renegotiate or stay disciplined.

786-656-0387

DreamPoint Capital

Website View Page

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Assistance needed on Multi-Family Structuring in NYC

Assistance needed on Multi-Family Structuring in NYC

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