Question re Cost of owning/renting out a multi-family brownstone

also you should ask if any of the units a are rent controlled

and taxes from a sinle unit increase dramatically if converting to a multiple unit dwelling...

single

the broker for any such building should have a detailed expense/income sheet available. it may not be entirely accurate (taxes will likely go up post sale), but it's a starting point. go see one that meets your general criteria and you can get an idea.

I've never owned a brownstone but I used to be friends with a couple who owned a three-family in Cobble Hill for many years. Based on the things they used to say:

I think taxes go way up once you cross the threshold from a three-family to a four family. It you have it officially set up as a four-family, you will get a much bigger tax bill than if you have it set up as a two- or three-family.

You need to talk to some people who own brownstones. Don't talk to brokers, they won't know the real in's and out's.

On a nice weekend afternoon stroll down some brownstone streets in the neighborhood where you want to live and strike up conversations with people you see on the stoops.

You also have to calculate maintenance and upkeep, which can be quite high. If the house is in a historic district, you will have to do your maintenance and renovation up to certain standards, which will which cost you more.

You should also figure the cost of keeping the rental units rented. You will almost certainly want to hire a broker for that, because the chore of taking phone calls and setting appts with prospective renters, and then checking out their financials, is really time-consuming.

Also, if your rental units are studios or one-bedrooms, the utility costs will be much less than if your rentals are two-bedrooms. Because presumably the two-bedroom would have more people living in it, and they would use more hot water, maybe a lot more hot water if they have kids.

You will have to declare your rental income on your own taxes, so take that into account too -- it might push you into a higher tax rate.

The FIRST question you need to ask is "Am I willing to take on the responsibilities of being a landlord?" If you've never been one, believe me you will learn things about human nature that you never would have expected. Talk to some people that are in the business of small-time landlording, then decide if it is for you.

Post your question here
http://www.brownstoner.com/forum/
after doing some searching of that site first.

The posters there are very knowledgeable about the stuff you are asking about.

Great idea to ask at brownstoner.com, there's lots of info there.

See page 2 of this set up:
http://www.masseyknakal.com/listingimages/setup/pdf/633712385901530000_Setup.pdf

I don't know if the numbers are accurate, but it gives you an idea of the types of expenses you would have.

If you go that route, you will be a landlord living in the building with your tenants. Not horrible, but not everyone's cup of tea. Also suggest going to Barnes & Noble & looking at some landlording books in the RE section.