Buying a Multi-Family Home on Staten Island: What to Know

Two- and three-family homes are a big part of Staten Island's housing. Many buyers live in one unit and rent out the other to help cover the mortgage, while others buy them purely as rental property. Here's what to know before you start looking.

Why Buyers Look at Multi-Family Homes

• Rental income: rent from the second unit can cover a real share of your monthly payment.
• Room to grow: a second unit gives you options later, whether that's more space for you or more income.
• Long-term investment: you build equity in a property that earns money at the same time.

Our search shows about 100 multi-family homes for sale on Staten Island right now. See Staten Island multi-family homes for sale.

Financing a Multi-Family Home

Financing works a little differently than for a single-family home, so talk to a lender before you start touring.

• Living in one unit helps. If you plan to live in the home, you may qualify for owner-occupied loans, including FHA loans with a low down payment on two- to four-unit homes. Investor loans usually need more money down.
• Rent can count toward qualifying. Many lenders count part of the expected rent, often around 75%, as income. Ask how your lender handles it, and whether they need existing leases or an appraiser's rent estimate.
• Get pre-approved early. Sellers of multi-family homes often see offers from investors, so a solid pre-approval makes your offer stronger.

What to Check Before You Buy

• The legal number of units. Check the certificate of occupancy with the NYC Department of Buildings. A basement or attic apartment that isn't on it may not be legal to rent, and lenders and insurers may not count it.
• Current tenants and leases. Ask for copies of every lease, the rent each tenant pays, and the security deposits held. Tenants with leases usually stay when the home sells.
• Separate utilities. Separate gas and electric meters for each unit keep your costs down and make billing simple.
• Condition of every unit. Have the inspector go through each apartment, plus the roof, boiler, plumbing and electrical, not just the unit you plan to live in.
• Parking. On many Staten Island blocks, driveway space matters to tenants as much as the apartment itself.
• Flood zones. Homes near the East and South Shore waterfront can sit in flood zones, which affects insurance costs. Check the flood map for any home you're serious about.
• Property taxes. In New York City, one- to three-family homes are taxed as Class 1 property, while buildings with four or more units are taxed differently. Ask what the current taxes are and whether any exemptions will end when the home sells.

Being a Landlord

Owning a rental unit comes with responsibilities. You'll need to follow New York State and NYC tenant laws, including rules on security deposits, lease renewals and repairs, as well as fair housing laws when you choose a tenant. Many two- and three-family owners handle this themselves, while others hire a property manager.

Selling a Multi-Family Home?

Buyers and their lenders will ask for the rent roll, current leases, utility costs and records of recent upgrades. Having these ready helps your home sell faster and for a stronger price. Get a free home value from a local agent.

Talk to a Local Agent

Every multi-family home is different, from the leases to the layout of each unit. Triolo Realty Group helps buyers and sellers across Staten Island, from the North Shore to Tottenville. Browse our Staten Island neighborhood pages, or contact us at 14 Foster Road, Staten Island, or call (718) 844-5414.

This article is general information, not legal, tax or lending advice. Loan programs and rules change, so confirm the details with your lender, attorney or tax professional.