Subdivided 2-Story Rowhouse Listed as SFH into 2-Family

[Jerome Nunez]

I recently purchased a 1500 SF two-story rowhouse in New York with a building class designation of Two Family Dwellings - Brick (B1). My partners and I subdivided the property into two distinct rental units:

• Unit 1: 2 BR / 1 BA
• Unit 2: 1 BR / 1 BA

Given this setup, the property is now being used as a multifamily dwelling. Should an appraiser compare it to other two-family properties in the area?

Our initial appraisal compared the property to single-family homes within a 3-mile radius, which seems inaccurate given the current use. Any insights?

[Zalman Ives]

Quote from @Jerome Nunez:

I recently purchased a 1500 SF two-story rowhouse in New York with a building class designation of Two Family Dwellings - Brick (B1). My partners and I subdivided the property into two distinct rental units:

• Unit 1: 2 BR / 1 BA
• Unit 2: 1 BR / 1 BA

Given this setup, the property is now being used as a multifamily dwelling. Should an appraiser compare it to other two-family properties in the area?

Our initial appraisal compared the property to single-family homes within a 3-mile radius, which seems inaccurate given the current use. Any insights?

Hey,

If "building class designation" is the same as zoning, then this seems like it can definitely be appraised as a two family, with both the legal and actual designation as a two family.

Depending where in NYC, that may not help your valuation, as primary residences sometimes sell for more than investment properties, so check that out before challenging the appraisal and definitely before paying for another one.

Double check all this with your lender/broker as well.

Best of luck!