Investment Property Loans in New York, NY

Under Local Law 18, New York City short-term rental hosts must register with the Mayor's Office of Special Enforcement, and booking platforms may not process stays at unregistered listings.

For investors: Stays of 30 consecutive days or longer fall outside the registration law. Owners can also tell OSE that short stays are barred in their building, placing it on the Prohibited Buildings List, a step a buyer of an NYC multifamily can take to keep units off booking sites.

Source: NYC Mayor's Office of Special Enforcement, Short-Term Rental Registration Law, Oct 2026

NYC stays under 30 days are legal only when the host lives in the unit with at most two paying guests, so whole apartments and one- or two-family homes cannot be rented that way.

For investors: The $145 registration fee is nonrefundable and a registration cannot be transferred, so a two-family bought with an active host listing hands the new owner nothing. Underwrite NYC rentals on leases of 30 days or more rather than nightly income.

Source: NYC Mayor's Office of Special Enforcement, Tips for Hosts, Oct 2026

New York City's own transfer tax is 1% up to $500,000 and 1.425% above for one- to three-family homes and condos, and 1.425% and 2.625% for other property such as larger apartment buildings.

For investors: The jump at four units matters: a four-family priced above $500,000 falls in the 2.625% schedule instead of 1.425%. When an LLC buys or sells a one- to four-family building, the city return must also attach a member list traced to natural persons.

Source: NYC Department of Finance, Real Property Transfer Tax, Oct 2026

Inside New York City, state law adds a supplemental tax of 0.25% to 2.9%, paid by the buyer, on residential purchases of $2 million or more, on top of the statewide 1% mansion tax.

For investors: These tiers apply only in the five boroughs, so an NYC deal near $2 million needs the extra buyer tax in the closing budget. Sellers also owe an added base tax at $3 million for residential property, or at $2 million for other property types.

Source: New York State Department of Taxation and Finance, Real estate transfer tax, Oct 2026

NYC's Department of Finance lists tax year 2026 (July 2025 to June 2026) as its latest: 19.843% for Class 1, one- to three-family homes, and 12.439% for Class 2 residential buildings, on assessed value.

For investors: These rates look steep because they apply to assessed value, which for a Class 1 home is a small fraction of market value. A fourth unit moves a building into Class 2, so compare tax on assessed value, not purchase price, when weighing a three-family against a four-family.

Source: NYC Department of Finance, Property Tax Rates, Oct 2026

NYC assesses Class 1 homes at 6% of market value, capping increases at 6% a year and 20% over five years; Class 2 buildings of 10 or fewer units are capped at 8% and 30%.

For investors: DOF warns that a capped assessment can keep rising even when market value falls, until it catches up to the 6% or 45% ratio. Model several years of capped growth on an NYC two-family rather than relying on the seller's current bill.

Source: NYC Department of Finance, Determining Your Assessed Value, Oct 2026

NYC bills properties assessed at $250,000 or less quarterly, due July 1, October 1, January 1 and April 1; properties assessed above $250,000 pay twice a year, on July 1 and January 1.

For investors: Assessed value, not price, sets the schedule, and because Class 1 homes are assessed at 6% of market value even a pricey two-family usually lands on quarterly bills. When a bank pays the taxes through escrow, DOF sends the bill to the bank instead.

Source: NYC Department of Finance, Property Tax Bills and Payments, Oct 2026

The Rent Guidelines Board's Order #58 set 0% increases for both one-year and two-year leases on rent-stabilized apartments starting October 1, 2026 through September 30, 2027.

For investors: A frozen year hits older buildings bought with stabilized tenants hardest, since costs keep rising while legal rents stay flat. Underwrite those NYC buildings on current registered rents with no 2026-27 increase, and keep the building's annual state rent registration with HCR current.

Source: NYC Rent Guidelines Board, 2026-27 Apartment/Loft Order #58, Oct 2026

Good Cause Eviction applies automatically in New York City; HPD put the city's local rent standard at 8.38% as of May 4, 2026, and a larger increase may be found unreasonable in court.

For investors: Owners holding 10 or fewer units statewide, homes built from 2009 on, and rents above 245% of fair market rent are exempt, so a small investor with a few two-families may fall outside it. Larger NYC portfolios should keep renewals under the standard or document cost reasons.

Source: NYC Department of Housing Preservation and Development, Good Cause Eviction, May 2026

NYC owners of buildings with three or more units, and of one- or two-family homes where no owner family member lives, must register with HPD each year by September 1; the fee is $13.

For investors: Skipping it costs far more than $13: an unregistered building of three or more units cannot bring a nonpayment case in Housing Court, and penalties for small multiple dwellings start at $500. File a new registration whenever ownership changes.

Source: NYC Department of Housing Preservation and Development, Property Registration, Oct 2026

Under NYC's Local Law 1 of 2004, owners of rentals built before 1960 must presume the paint contains lead, send tenants an annual notice, and inspect yearly where a child under six lives.

For investors: Pre-1960 rental buildings also had to finish a one-time test of every painted surface by August 2025, so ask an NYC seller for those results. HPD audits these records, and repairs the city performs after ignored violations are billed to the property.

Source: NYC Department of Housing Preservation and Development, Lead-Based Paint, Oct 2026

City of Yes for Housing Opportunity, adopted December 5, 2024, allows accessory dwelling units such as backyard cottages, garage conversions and basement apartments on one- and two-family lots in all low-density districts.

For investors: For an investor holding a detached house in the outer boroughs, an ADU can add a rentable unit without a rezoning. The city restricts some ADU types in flood-prone areas and for neighborhood context, so check the lot's zoning and flood status before planning a basement or backyard unit.

Source: NYC Department of City Planning, City of Yes for Housing Opportunity, Oct 2026