Turning a duplex into a triplex in Old Brooklyn?

Question

I am closing on a duplex in Old Brooklyn on the 17th and it has a huge attic I am thinking about turning into an efficiency unit. Question is do I need to do anything with the city since the property is already a multifamily? Is there paperwork involved in doing this or to I just build it out and and find a tenant? Anyone with experience doing something similar in this area?? Followup question, I will be looking for a couple people to quote this work if you can recommend a good contractor.

Thanks

Federico Gutierrez · Answer

Dont forget that even if you go ahead and build the third unit. When you go to sell the BANK is only going to apparise this property as a double. That's what it is on title and that's what the comps will be against. Going to be very hard to convince the bank it's a triplex with out they city rezoning it, which would mean you would have to then go about getting permits and complying to codes to legally turn it into a triplex.

James Wise · Answer

@Phil Morgan Account Closed

It would be cost prohibitive for you to do this.

There are many of those big Old Brooklyn duplexes that have already been converted that are grandfathered in. If you can pick one of those up you should hop on it. However converting one now is a actually loss leader.

You need to have two forms of egress out of that 3rd floor unit. With the way these were constructed this would require an extensive rehab/modification to the home. That along with the cost of electric, plumbing, finishes etc... the additional $350-$500/mo you could earn off of it doesn't pan out.

A better move owuld be to finish off the attic as an additional bedroom for your upstairs unit. This will take a $650 unit and turn it into a $750 unit for a fraction of the cost. Also worth noting that you will be much better off with a $750 tenant than a $650 tenant & a $350 tenant.

James Wise · Answer

Don't think it's worth the cost and effort to do so. Your capped at the $750 range. Remember if you go up into the $800's your duplex unit is now competing with single family homes.

Phil Morgan · Answer

Thank you for the information guys. The property is actually in Old Brooklyn in Cleveland Ohio not NYC but I am sure a lot of the zoning is the same. I will check with someone at the zoning office and see what they say. If I can do it legally I will if not I'll probably just make it a master suite for the upstairs unit or just leave it as storage.

Phil Morgan · Answer

@Dan Mitchen, thank you!

It does not have 2 egress points, but either do apartment buildings correct?  If I'm in a third floor apartment building I only have 1 egress route unless I want to jump out a window.  Am I looking at this incorrectly?

So basically I just have to get a permit for the work? I just wanted to make sure I don't have to do any additional paperwork to change the property legally from a duplex to a triplex.  Or does it matter since it's already a multifamily property?

James Maradits · Answer

I agree with James.  I think that the effort to add a bath up there would probably be overdoing it.  I think you'd be better off just finishing the attic and letting the upstairs unit use it as another bedroom or additional space.  Definitely check with building code for things such as the knee wall minimum height, required window size, HVAC, etc to make sure when it's time to sell it will appraise as livable square footage.

Phil Morgan · Answer

@James Wise, thank you for the info!  This is exactly what I was looking for, unfortunately it was the answer I was afraid of though.  Making it a bedroom suite is a good idea as well I was just hoping for the extra rent from the additional unit.  You're probably right about the $400 tenant though.  Do you think getting plumbing up there to make it a real "master suite" would not be worth the investment?  I know this isn't a high dollar neighborhood so I obviously do not want to over do it.

Thanks

Phil Morgan · Answer

@Tom Ott, thanks that is exactly what I'm going to do.

Tom Ott · Answer

It would most likely be a bad idea to lease that unit without the city knowing it is a 3 unit. If only for occupancy permits, you will want to make sure the city has everything filed. The property might need to be rezoned, etc.

Turning a duplex into a triplex in Old Brooklyn?

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