Multiplex - 4 units Residential/Commercial

[Brianne Dylla]

Hi,

I am looking to invest in an the construction of an apartment building on a lot that I own. I read that 4 units are considered Residential, but 5 units is considered commercial. If I build 2 four-plex buildings, is it still residential? Thank you 

[Frank Chin]

Originally posted by @Brianne Dylla:

Thank you for the response, are the taxes residential still or are they commercial? Other than loan type and taxes, are there any other differences I should be considering? 

Here in NY where I am, SFR, duplex to 4plex are taxed at residential rates. The other are building standards. Had trouble getting a CO as a triplex when originally built as duplex. Triplex some years ago require fire escapes, cement walls for furnace rooms. Current construction requires sprinklers, Siamese water hookups in front. There are zoning requirements as well. However these are all local requirements so your best bet is check with city planning where you are.