Buying into small coop with commercial 1st floor?

Personally I would never buy into a building with so few shareholders--too much risk and exposure if someone were to default, not to mention super-high per-tenant assessments when the boiler or roof has to be replaced.

What kind of a commercial tenant? I think you want to be very clear about what's allowed and how much control the board has. Is this a live-work situation, or a true commercial space? Is the commercial unit a part of the co-op, or is it held separately?

bramstar, I hear you to some extent, but keep in mind that the roof and heating system for smaller, brownstone-sized buildings are generally much cheaper to replace. A new roof might even be a four-figure job for a typical 25' x 50' brownstone.

lad, it is a true commercial space (leased now to an electorics store). Not sure of it is held separately or part of the coop. I assume the latter would be worse?

IMO, do not buy into an 8 unit co-op. If one or 2 units don't/can't pay mntnce, you will have to pay their share until a new buyer/renter is found. Also, if the co-op depends on the rent of the commercial & you lose that tenant, same scenario.

I don't think it's quite so black and white. Personally, it's not my cup of tea, but you know yourself best. I think it takes a special kind of person to be part of the small co-op family, and I know several people who wouldn't have it any other way.

What's the problem?
There is only one shareholder using their shares to generate income and that's your concern?
Buildings have history. Good condition with a responsive maintenance attitude is always a good bet.
Don't judge by size alone. It doesn't have to be big to be good, but if it's big....it's good.

I agree it's not so black and white. With micro buildings, you tend not to have professional management, but the tradeoff is that you usually have more of a voice in how the building is run. With buildings this small, the "board" is usually everyone in the building who is inclined to participate. Usually, buildings this small are not dealing with a sponsor, and they're basically forced to have 100% owner occupancy (or 100% - one unit) for financing reasons. It tends to function as a true "cooperative," for better or worse!

One or more shareholders not paying maintenance is a risk, but most micro buildings will still require 20-25% down and healthy liquid savings to mitigate that risk. That said, the level of reserves do need to be cushioned appropriately. I've seen some < 10 unit buildings with no reserves (run!) and then others with $100k or more in reserves.

Back to the OP's question, this is a complicated situation, and the devil will be in the details. I'm not sure if it's inherently advantageous to have the commercial space as part of the co-op or held separately. It depends on who owns it, what the restrictions are, and where and how much cash is flowing between the commercial space and the co-op (or whatever larger entity).