Just looking at the photo in this post, you have 5 houses visible and in that group, an 8 family, a single family and a house that was an SRO being converted to a 4 family home. Lots of diversity. What allows such a variety of uses buyers often ask? Well, the zoning allows it and as long the department of buildings allows either the alteration or continued use of the building, it continues. Have you ever wandered down a Manhattan brownstone block and counted bells? Yes, that’s one way to take a guess at the number of units but not always accurate as over time owners may combine units.

The other question that buyers often ask is what is best use of the townhouse? Well that depends on the your strategy. The smaller units are easier to rent out but there is more turnover and more regulation. You will have a much easier time renting out 600 sqft 1 bedroom apartments than 3 floors for $6500 per month but the turnover will be higher. Also, as you have more units, you have potentially higher taxes and different requirements per building codes as you crossover from a residential use to a commercial one. As always, a thorough analysis of the building combined with conversations with your team including general contractor, architect and experienced real estate broker will be the best way to protect your investment.