Buyers Peter Mancini July 2, 2025
For many Brooklyn homebuyers, the idea of purchasing a two-family home is incredibly appealing—and for good reason. Live in one unit, rent out the other, and let your tenant help pay the mortgage. It’s called house hacking, and when done right, it can be a powerful wealth-building tool.
But what most first-time buyers don’t realize is this: purchasing a multifamily home comes with a different rulebook—and different risks.
According to The Wall Street Journal, buyers looking to finance a two-family property often face higher down payment requirements. Unlike single-family homes, which might only require 10–20% down, many lenders expect 25% or more for a multifamily purchase.
Why the difference? Banks see added risk. If your tenant stops paying rent or moves out unexpectedly, you're solely responsible for the entire mortgage. It’s a safety net the bank needs—but it can catch buyers off guard.
As The New York Times notes, buying a two-family home makes you both a homeowner and a landlord. That means you’re responsible for everything from midnight plumbing issues to late rent payments and tenant disputes.
This isn’t a passive income stream—it’s a hands-on business. If you’re not ready to manage the property (or hire someone who is), the dream of extra income can quickly become a source of stress.
At Pen Realty, we help buyers prepare for what’s ahead. Based on insights from The Real Deal, our Buyer’s Guide outlines eight crucial areas you need to understand before committing to a two-family investment. These include:
Financing structure and mortgage readiness
Tenant rights under NYC housing law
Maintenance costs and unexpected repairs
Projected rental income vs. actual market rent
Property tax implications
Insurance requirements
Exit strategy
Emotional and time management factors
You can review the full Pen Realty Home Buyer’s Guide or connect with our team directly to walk through each of these concerns in detail.
As a licensed real estate broker and proud member of REBNY and BNYMLS, I bring a local, informed perspective on Brooklyn’s unique two-family market. Whether you’re looking in Bay Ridge, Bensonhurst, or Crown Heights, each neighborhood has its own zoning regulations, rent expectations, and tenant demographics.
Our recent blog post, "How to Strategically Invest in Brooklyn’s Duplex Market", breaks down neighborhood trends, price appreciation, and vacancy data to help you choose the right area for your goals.
Buying a two-family home is more than a financial transaction. It’s a lifestyle shift. Don’t let the dream of passive income distract you from the realities of landlord responsibilities. Make sure the numbers, the strategy, and your emotional readiness all align.
If you’re unsure whether a multifamily property is the right fit, don’t guess—get guidance.
Have questions about financing, property management, or tenant screening? Book a 1-on-1 consultation and let’s discuss if a two-family investment aligns with your long-term goals.
📍 Visit penrealty.net to connect.
At Pen Realty, we proudly support CaringKind NYC, an Alzheimer’s care and research nonprofit that’s close to my heart. Whether you're buying your first home or your fifth, consider joining us in making a difference.
Together, we can help build stronger communities—inside the home and beyond.
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