Thinking about buying an investment property on Staten Island and trying to choose between a single‑family house or a small multi with 2–4 units? You are not alone. Many buyers want cash flow today and equity tomorrow while keeping risk in check. In this guide, you will learn how returns really work in Staten Island, what financing can do for your numbers, and a simple example you can adapt to any listing. Let’s dive in.
Staten Island market at a glance
Recent 2025 borough reports show median prices hovering near the 700,000 mark, with steady upward pressure in many neighborhoods. You can review current figures on the Rocket Mortgage Staten Island page for context on pricing and trend direction (latest local snapshot).
On the rental side, asking rents have risen across the city. Staten Island remains more affordable than Manhattan and Brooklyn, and many asking rents across unit types land in the low‑to‑mid 2,000s. For borough‑level context, check Zillow’s Staten Island hub and recent rental data snapshots (borough overview).
What this means for you: lower price per door than other boroughs, paired with healthy demand, can support stronger gross yields for small landlords and owner‑occupants.
How to measure “returns”
- Gross rent yield: annual rent divided by purchase price. Fast to compare options. Ignores expenses.
- Net operating income (NOI): gross rent minus operating costs you pay, such as taxes, insurance, repairs, management, and any landlord‑paid utilities.
- Cap rate: NOI divided by purchase price. A simple income‑pricing yardstick.
- Cash‑on‑cash return: annual pre‑tax cash flow divided by your actual cash invested, such as down payment, closing costs, and initial reserves.
Cap rates for small multifamily in the NYC metro often land in the mid‑single digits, with suburban and Class B/C assets tending higher than Class A. Staten Island frequently sits on the higher‑yield end relative to Manhattan and Brooklyn, but exact returns depend on condition, regulation, and location (cap‑rate context).
Quick math: single‑family vs small multi
Below is a simple, illustrative comparison using recent borough‑level pricing context and typical rent ranges. Your actual numbers should be built from the specific address, leases, and current quotes.
Assumptions for this example
- Purchase price for either property: 700,000, in line with recent borough medians noted above.
- Market rent guidance: many Staten Island units ask in the low‑to‑mid 2,000s, based on current aggregator snapshots (rental context).
- Expense placeholder: 35 percent of gross rent for taxes, insurance, repairs, reserves, management, and vacancy. This is a simple rule‑of‑thumb, not a quote.
Example A: single‑family rental
- Estimated monthly rent: 2,800
- Gross annual rent: 33,600
- Gross yield: about 4.8 percent
- Estimated expenses at 35 percent: 11,760
- NOI: 21,840
- Simple cap rate: about 3.1 percent
Example B: 2‑unit small multi
- Estimated monthly rent per unit: 2,200
- Total gross monthly rent: 4,400
- Gross annual rent: 52,800
- Gross yield: about 7.5 percent
- Estimated expenses at 35 percent: 18,480
- NOI: 34,320
- Simple cap rate: about 4.9 percent
What the math suggests
- A small multi often delivers higher gross yield and a stronger cap rate at a similar price point because you collect multiple rents on one lot.
- A single vacancy in a duplex still leaves partial income. A vacancy in a single‑family means zero rent until re‑leased.
- Your results will swing with taxes, flood insurance, actual rents, and your financing.
Financing that changes the picture
Owner‑occupants have access to favorable terms that can lower the cash barrier and improve cash‑on‑cash returns.
- Conventional 2–4 unit, owner‑occupied: Fannie Mae guidelines updated in late 2023 opened doors to lower down payments, often as low as about 5 percent for qualified borrowers. Lender overlays and reserve rules apply, so verify with your lender (overview of the update).
- Property eligibility basics: Fannie Mae’s selling guide outlines 1–4 unit rules, which your lender will apply during underwriting (property eligibility guide).
- Conforming loan limits: higher limits in NYC counties can help you avoid jumbo financing. Check the latest county limits before you model payments (conforming limit context).
Bottom line: if you plan to live in one unit, a duplex or triplex can pair a lower down payment with rental income that offsets your housing cost.
Taxes, regulation, and insurance you should factor in
- NYC property taxes: One‑ to three‑family homes fall under Class 1 rules. Effective tax bills vary by assessed value, caps, and exemptions, which means two similar buildings can have different taxes. Always pull the DOF record when you model NOI (tax system primer and market context).
- Rent regulation: Most pure 2–4 unit buildings are not stabilized for new tenancies, but exceptions exist. Confirm status with DHCR records before assuming free‑market rents (NYC rent regulation background).
- Flood risk and insurance: Staten Island’s coastal areas carry meaningful flood exposure. FEMA’s 2025 updates placed additional Richmond County structures into high‑risk zones, which can raise insurance costs and may be required by lenders. Check the flood map, elevation certificate, and obtain quotes early (FEMA remap coverage, NYC flood hazard profile).
Who each option fits
Single‑family home
- Best if you value simpler operations and broad resale appeal.
- Likely return profile: more of your total return may come from appreciation, with thinner cash yield at purchase.
- Watchouts: one vacancy means full income loss during turnover.
Small multi, 2–4 units
- Best if you want multiple income streams and stronger cash yield potential.
- Likely return profile: cap rate and NOI drive value, with cash flow supported by several units.
- Watchouts: more management, possible regulatory exposure, and financing that gets more complex for non‑owner‑occupied loans.
Due diligence checklist for Staten Island
- Verify the legal unit count and certificate of occupancy.
- Pull DOB and HPD records for open violations and past work.
- Confirm rent‑regulation status with DHCR records if any leases exist.
- Check FEMA flood maps, review any elevation certificate, and get flood insurance quotes.
- Review NYC DOF tax history and any exemptions or abatements.
- Confirm utility metering, shared systems, and expected landlord‑paid utilities.
- Inspect roof, foundation, heating, electrical, plumbing, and egress. Budget capital reserves.
- Verify rent roll, deposits, and lease terms in writing for occupied properties.
- Obtain a current lender quote, including reserves and the proper conforming limit for Richmond County.
Next steps
If you want to pressure‑test a specific address, we can build a property‑level model that ties real rents, taxes, flood insurance, and renovation scope to an accurate NOI. As construction‑savvy, valuation‑driven advisors, the DE Advisory Team can help you compare a single‑family against a 2–4 unit, model financing paths, and plan renovations that improve returns.
FAQs
What usually cash flows better on Staten Island, a single‑family or a small multi?
- Small multis often produce higher gross yields and stronger immediate cash flow because you collect multiple rents on one lot, though expenses and regulation can narrow the gap (rental context).
Can I buy a duplex or triplex with a small down payment if I live there?
- Yes, many owner‑occupants can access conventional financing that allows down payments around 5 percent on 2–4 unit properties, subject to lender rules and reserves (financing update overview).
Are 2–4 unit buildings on Staten Island usually rent regulated?
- Most are not stabilized for new tenancies, but exceptions exist, so confirm status before underwriting rents (rent regulation background).
How does flood insurance affect returns in Staten Island’s coastal areas?
- Flood‑zone placement can raise annual insurance costs and may be required by your lender, and FEMA’s 2025 updates added some Richmond addresses to high‑risk zones (FEMA remap coverage).
Which is easier to sell later, a single‑family or a small multi?
- Single‑family homes usually have a larger buyer pool, which can support liquidity, while small multis sell to a narrower group of investors and owner‑occupants, so timing and pricing can differ by neighborhood (market snapshot).
