What We Buy
Sell Your Brooklyn Two-, Three- or Four-Family Home
We buy Brooklyn’s small multifamily buildings directly from owners: two-families, three-families, four-families and small walk-ups, occupied or vacant, in any condition. You get a written offer, your attorney runs the contract, and you choose the closing date.
- Two- to four-family homes and small walk-ups
- Tenants in place, paying or not
- Violations, illegal units, deferred repairs
- Written offer, no obligation
Get an Offer on Your Building
Four quick fields. We respond within one business day.
Want to share rents, units or zoning? Use the detailed form.
Quick Answers
Selling Small Multifamily in Brooklyn: Quick Answers
Who buys two-, three- and four-family homes in Brooklyn?
Red Hook Development buys two- to four-family homes and small walk-up apartment buildings across Brooklyn directly from owners, for cash and as-is. We buy brick rowhouse two-families in Bay Ridge and Sunset Park, frame three-families in Greenpoint and Bushwick, semi-detached two-families in Canarsie and East Flatbush, and walk-ups throughout the borough, with tenants in place and without repairs. You get a written offer and an attorney-run closing on your timeline.
Is a two-, three- or four-family home in Brooklyn rent stabilized?
Usually not. Rent stabilization generally applies to buildings with six or more apartments built before 1974. The main exceptions are buildings that took certain tax benefits such as J-51 or 421-a, buildings that once had six or more units, several small buildings that share ownership and systems and may be treated as one, and the rare tenant with rent-control status. An attorney can confirm your building’s history.
Can I sell a multifamily building with tenants in place?
Yes. Leases and tenancies continue after a sale, and the buyer becomes the landlord. We buy occupied buildings routinely, including floors with long-term tenants, month-to-month tenants, family members and tenants in housing court. You do not need to empty units or resolve disputes before selling to us.
How is a small multifamily valued by a developer?
We start from what the building will be after renovation, whether a re-rented multifamily, an owner-occupied two-family or a reconfigured house, and what similar renovated buildings nearby sell for. We then subtract construction, permits, time, carrying costs and the effect of current tenancies. For buildings bought as rentals, the rent roll and expenses drive the number. We explain the math with every written offer.
Should I list my two-family or sell it direct?
If the building is in good shape, vacant or easily delivered vacant, with a clean certificate of occupancy, listing often nets the most, because owner-occupant buyers can use residential mortgages. A direct sale tends to fit when units are occupied by tenants who will stay, the house needs major work, there are illegal units or violations, or there is an estate. We will tell you honestly which applies.
What We Buy
Small Multifamily Buildings We Buy
Brick Two-Families
Two-story brick rowhouses and semi-attached homes with one apartment per floor, common across Bay Ridge, Sunset Park, Bensonhurst, Dyker Heights and Kensington. Many are owner-occupied on one floor with a tenant on the other, and many have finished basements.
Frame Three-Families
Wood-frame or vinyl-sided houses with a railroad apartment on each floor, typical of Greenpoint, Williamsburg, Bushwick and Cypress Hills. They often have strong rental demand and old systems, and some have aluminum or asphalt siding over original clapboard.
Four-Family Buildings
Four-unit buildings, often two apartments per floor, found in Bedford-Stuyvesant, Crown Heights, Flatbush and Sunset Park. At four units the building leaves property tax Class 1 and enters Class 2, which changes how it is taxed and how lenders treat it.
Semi-Detached and Detached Two-Families
Postwar two-families with driveways and garages in Canarsie, Flatlands, East Flatbush, Marine Park and Gravesend. These can have more lot area and, after the 2024 City of Yes changes, may have accessory unit potential worth considering.
Small Walk-Ups
Five- to twenty-unit walk-up buildings, including old-law and new-law tenements in Williamsburg, Bushwick, Sunset Park and Bed-Stuy. Buildings with six or more units built before 1974 are generally rent stabilized, and we buy them with every tenancy in place.
Buildings With Problems
Small multifamily with illegal basement or cellar units, open HPD or DOB violations, non-paying tenants, a vacate order, fire or water damage, or an unfinished renovation. These are hard to finance and hard to list, and they are exactly what we buy.
The Housing Stock
Brooklyn’s Small Multifamily Stock
Two- to four-family homes are the most common building type in much of Brooklyn. They were built to let a family own the building, live on one floor and rent the others, and that model still shapes who buys them and why.
- South Brooklyn: brick two-families and semi-attached homes in Bay Ridge, Dyker Heights, Bensonhurst and Sunset Park, plus three- and four-families near Fourth and Fifth Avenues.
- North Brooklyn: frame three-families and narrow walk-ups in Greenpoint, Williamsburg and Bushwick.
- Central Brooklyn: two- to four-family brick and limestone rowhouses in Bedford-Stuyvesant, Crown Heights and Flatbush.
- East Brooklyn: frame and brick two- and three-families in East New York, Cypress Hills and Brownsville.
- Southeast Brooklyn: semi-detached and detached two-families in Canarsie, East Flatbush, Flatlands and Marine Park.
Small Walk-Ups
Above four units, Brooklyn’s small apartment buildings are mostly walk-ups. Old-law tenements, built before the Tenement House Act of 1901, are typically narrow five-story buildings with small apartments. New-law tenements and later walk-ups are often wider, with better light and air. Many sit on avenues with stores below; see our mixed-use page for those.
The Six-Unit Line
Rent Stabilization and the Six-Unit Threshold
The biggest regulatory question for small multifamily is whether any apartment is rent regulated. For most two- to four-family homes, the answer is no, but it pays to understand why and where the exceptions are.
The General Rule
Rent stabilization in New York City generally applies to buildings with six or more residential units built before January 1, 1974. Commercial spaces are not counted as residential units. A two-, three-, four- or five-family building that never had six apartments and never took a tax benefit is typically outside stabilization, which is a major reason these buildings trade differently from larger walk-ups.
The Exceptions
- Tax benefits: buildings that received J-51 or 421-a benefits can carry stabilization obligations even with fewer than six units, sometimes for years after the benefit ends. See our page on 421-a buildings.
- Unit combinations: a building that had six or more apartments when stabilization applied can remain covered even after units were combined below six.
- Shared buildings: several small buildings under common ownership that share systems such as a boiler or were built and operated as one complex can, in some cases, be treated as a single building for the six-unit count.
- Rent control: rare but possible in older buildings. For buildings with three or more units built before 1947, it generally requires continuous occupancy since before July 1971; in one- and two-family houses, since April 1953.
- Government programs: buildings with HPD loans or regulatory agreements may have rent restrictions written into the agreement.
Six-family and larger walk-ups built before 1974 are usually stabilized. If yours is, see selling a rent-stabilized building and our broker vs. direct buyer guide. Coverage turns on records and history, so have an attorney review your building.
Tenant Rules
Good Cause Eviction and Other Rules for Small Buildings
Unregulated does not mean unprotected. New York’s 2024 Good Cause Eviction law covers many market-rate apartments in New York City, limiting renewal rent increases above a set standard and requiring a recognized reason to evict. It has exemptions that matter for small multifamily:
- Owner-occupied buildings with ten or fewer units.
- Small landlords who own ten or fewer units in total in New York State, counted across individuals behind an LLC.
- Buildings with a certificate of occupancy issued on or after January 1, 2009, and apartments that are rent regulated, among others.
An owner-occupied two-family is often exempt while the owner lives there, but a sale to an investor who owns many units can change that. Buyers and sellers should both understand where a building stands. If you have a tenant who is not paying or a case in housing court, read our guide to selling with non-paying tenants. This is general information, not legal advice; confirm with an attorney.
How We Value It
How a Developer Values Small Multifamily
Small multifamily sits between two markets: owner-occupants who want a home with rental income, and investors who buy on rent. A developer looks at both and asks which one the building should end up serving.
Owner-Occupant Value
One- to four-unit buildings can be bought with residential mortgages by owner-occupants, which is why a renovated, vacant two-family often commands a strong price. If a building can be delivered to that buyer after renovation, we value it from that finished sale, minus the cost and time to get there.
Investor Value
Where tenants will stay, the rent roll and operating expenses drive value: taxes, water and sewer, insurance, fuel, repairs and management. Below-market rents reduce value to an investor today but leave room over time, subject to the rent rules that apply.
What Comes Off the Top
- Renovation: roof, boiler, electrical service, plumbing, windows and kitchens and baths in each unit.
- Legalization: correcting or removing illegal basement or cellar units, or filing to change the certificate of occupancy.
- Compliance: lead paint obligations in pre-1960 buildings, HPD registration for three or more units, gas piping inspections for buildings with three or more units, and open violations.
- Time and occupancy: how long the work takes and how it can be staged around tenants who stay.
Zoning Upside
Some small multifamily lots have unused floor area, especially wider lots and corners near transit. City of Yes for Housing Opportunity, adopted in December 2024, also added options such as accessory dwelling units for one- and two-family homes in low-density districts and reduced parking mandates in much of the city. Whether that changes your building’s value is site-specific; our air rights guide explains the basics.
Paperwork
Certificates of Occupancy, Illegal Units and Violations
Many Brooklyn two- and three-families have more apartments than their paperwork allows, most often a basement or cellar unit or an attic apartment. Others were built before 1938 and never needed a certificate of occupancy, so the legal unit count comes from DOB and HPD records.
These issues matter more to financed buyers than to us. A lender appraising a legal two-family will not credit a third illegal unit’s rent, and may require it to be removed before closing. We look at what exists, what is legal, and what it would take to align them, then price it. Disclosure matters: tell us what you know, and your attorney will make sure the contract reflects it. Our violations guide covers HPD, DOB and ECB issues in detail.
Why Owners Sell
Why Brooklyn Owners Sell Small Multifamily
- A long-time owner-occupant is retiring or moving out of state and does not want to be a long-distance landlord.
- Heirs inherit a two- or three-family with a tenant upstairs. See our inherited property guide.
- A tenant is not paying or there is a housing court case, and listing feels impossible.
- The building needs a roof, boiler or full renovation and the rents do not support the loan to fund it.
- There is an illegal unit or open violations that keep coming up with buyers and lenders.
- A loan is coming due or a refinance is not working out, and the owner wants a clean exit on a known date.
Your Options
Listing, Holding or Selling Your Building Direct
List With a Broker
A well-kept, legal two- or three-family that can be delivered with at least one floor vacant often draws owner-occupant buyers who can pay well with residential financing. Listing usually makes sense there. Expect commission, showings, an appraisal and lender conditions, and a longer timeline if the buyer’s financing hits a snag.
Keep It and Renovate
If you can fund the work and manage tenants and contractors, renovating and holding can build value. The trade-off is time, capital and the landlord role, which some owners enjoy and others are ready to leave.
Sell Direct to a Developer
A direct sale fits best when tenants will stay, the building needs major work, there are illegal units or violations, or there is an estate or a deadline. You get a written offer, skip repairs and showings, and pick your closing date. You may give up some price compared with a perfect retail sale in exchange for certainty. Our off-market sale guide explains the trade-offs.
How It Works
How We Buy Small Multifamily
- Tell us about the building. Address, number of units, which are occupied and roughly what each rents for. The quick form above is enough, or use the detailed form.
- We check the records. DOB, HPD and Finance records, the certificate of occupancy, rent registration history and the zoning.
- One walkthrough. We see the vacant units, basement, boiler and roof, and any occupied units with proper notice to tenants.
- Written offer. Price and terms in writing, with our reasoning. No obligation and no fee to you.
- Attorney-run closing. Attorneys handle contract, title, leases and security deposits. You choose the date.
We respond within one business day and keep your inquiry confidential. To see everything we buy, visit What We Buy.
FAQ
Multifamily Seller Questions
What happens to my tenants’ security deposits when I sell?
Under New York law, deposits must be handled properly at sale, typically by transferring them to the buyer at closing and notifying tenants. Your attorney and ours will account for each deposit in the closing statement so you are not left holding a liability.
Do you buy a two-family where I live on one floor?
Yes. Many sellers live in the building. We can set a closing date that gives you time to move, and the attorneys can write in a short post-closing occupancy if you need a few extra weeks.
Will you buy a building with a basement apartment that is not legal?
Yes. Illegal basement and cellar units are common in Brooklyn. We price the cost of legalizing or removing the unit and handle it after we buy, including working with any tenant who lives there. Tell us what exists so the contract is accurate.
Is a five-family building treated differently from a six-family?
Often, yes. A building with six or more units built before 1974 is generally rent stabilized, while a five-family usually is not, unless an exception such as a tax benefit or past unit combination applies. That one-unit difference can change how buyers value the building significantly.
Do I need to give my tenants notice that I am selling?
Generally, no notice of sale is required for an ordinary sale subject to existing leases, though tenants need reasonable notice before access for a walkthrough. Leases and local rules vary, so ask your attorney about your situation.
What if my building has a loan coming due?
We can work with a maturing loan. Your existing mortgage is paid off from the sale proceeds at closing. If the timing is tight, tell us the maturity date so we can plan the contract and closing around it.
Keep Exploring
More Ways We Buy in Brooklyn
We buy small multifamily across the borough, along with the property types that share their blocks.
Own a Two- to Four-Family in Brooklyn?
Find out what a developer will pay — privately, with no obligation. Call 718-500-3423 or email bklyn@redhookdevelopment.com.