6 Unit Building in the Bronx

[Anna Cerda]

Hi everyone,

I need some advise. I am in the process of buying- offer has been accepted- for a 6 unit building- I need some advise on best way to handle sending non-renal notices month to month tenants. All the current tenants are paying way below market rent. 

As you guys know, NY is pro-tenant hence why I want to know the best way to get all new tenants.

The current rent can service a dscr loan but I want to know what do banks look for if I wanted to do Brrrr on this 6 unit budling once the rents are at market. 

Thank you.

[Mohammed Rahman]

Hi @Anna Cerda - congrats on your offer being accepted. I'm an investor and broker based in NYC and can give my $0.02. 

Have you already closed on the property? If not, then you're not going to be able to send any non-renewal notices at all. I know you were probably referring to post-closing, but just wanted to be sure. 

If all current monthly tenants are paying well below market rents, I'd ensure that the units themselves aren't stabilized/controlled. I have a comprehensive list that you can also find searching through NYC DOB database, simply text or DM me at the number in my signature. 

In terms of sending out non-renewal notices post-closing, it would depend on how long the current tenants have actually been there. NYC imposes timeline restrictions on notice periods for tenants that have been there for 1-2yrs, 2+ yrs, and so on - meaning, the longer the tenant has been in place, the longer notice period you need to provide. 

I *STRONGLY* advise you to consult with a tenant attorney if your plan is to truly vacate the units as the attorney will be able to follow the process step-by-step. 

The reasoning here is that in NYC, if you were to go to court regarding any kind of eviction proceeding, if the tenant claims that you missed any of the multiple steps (Even if by 1 day) then the process will be required to start from step 0. 

It's a commercial property, so it will likely depend on lender to lender regarding the traditional BRRR strategy.

Happy to point you in the right direction of attorneys, lenders, etc. if you need my suggestions - simply message me thanks.