In these 120-year-old townhouses, many of our neighbors have lived in them for half the home’s lifespan. Some were even born and raised in the same house (!!). But each year, the number of longtime owners grows a little smaller.

These neighbors are often artists, former teachers, or small business owners. They didn’t earn hedge fund paychecks. Most built working-class lives and are now approaching retirement with little in the way of traditional savings.

I know these people. They’re my clients. One recently told me,
“We’ve got no stocks or bonds or IRAs. This” — gestures to the house — “this is what we’ve got.”

So when the checking account starts running low, what can a homeowner do with a house worth $5 million?

Rental Musical Chairs

Let’s start with the classic BoCoCa layout — a four-story townhouse with an owner’s triplex above a garden rental. Here are a few ways to work with it:

Option 1: Move to the Garden Apartment

The simplest option is to move into the garden apartment and rent out the triplex above.

Even on the lower end, triplex rentals in Boerum Hill, Cobble Hill, and Carroll Gardens can command a minimum of $12,000. That’s a significant income stream, especially for someone staying in the home they’ve loved for years.

Option 2: Create a Double Duplex

I’m a big fan of the double duplex.

If the garden unit feels too tight, and you have the budget for a renovation, a double duplex may be a better fit. These are often laid out with kitchens on the parlor and third floors, creating two duplex units.

This kind of work likely requires an Alt-1 filing, which means submitting architectural plans and getting DOB approval for a significant change in layout or use. Renovation costs can add up, but I’ve helped clients complete this conversion while keeping expenses manageable.

Best of all, you’ll get to keep the parlor floor. That detail matters. There's something about its scale and character that makes people feel like they haven't truly left their home.

An upper duplex in the area rents for $8,000 per month or more, providing steady income while you remain in a familiar space.

Mortgage Moves

If you’re not ready to shuffle living spaces, there are financing options that allow you to pull equity out of your home. These options are less straightforward, and they often depend on personal financial details.

Option 1: Home Equity Loan or Line of Credit (HELOC)

If you have substantial equity, you may qualify for a home equity loan (a lump sum) or a HELOC (a line of credit you draw from over time). However, the loan amount depends on more than just the value of your house.

Lenders also look at income and debt. Even if your home is worth $5 million and fully paid off, a modest income could limit you to borrowing only a few hundred thousand dollars.

Option 2: Reverse Mortgage

Homeowners aged 62 and older may qualify for a reverse mortgage (or age 55, if it’s a jumbo reverse mortgage). This loan allows you to receive monthly payments secured by your home’s equity. You don’t repay the loan until you sell, move out, or pass away.

Reverse mortgages come with fees and specific rules that can affect your heirs. Not all lenders offer them, and they can be pretty tricky - so it’s extremely important that you’re walked through the fine print.

For some, though, a reverse mortgage offers the ability to stay in place and generate income without selling.

Selling the Home

I’m eager to help longtime homeowners stay put if that’s what they want. But sometimes, selling really is the smartest move — especially if most of your wealth is tied up in the house.

Of course, selling comes with costs. And if you’ve owned the home for decades, the capital gains tax can be steep.

That’s why I always suggest talking to a good accountant early on. Ask the simple version of the big question:
“If we sold our home today, what would we actually walk away with after taxes?”

From there, we can start looking at smaller homes nearby (maybe a condo or a rental unit in a doorman building) and figure out how much you’d have left to put toward retirement.

An accountant can also help with some longer-term strategy. In certain cases, adjusting your rental setup a few years before selling could reduce your tax bill. It might even make a 1031 exchange a viable option for you, letting you roll your proceeds into a new investment property without paying capital gains right away.

There’s no one-size-fits-all answer here. Every homeowner’s situation is a little different - financially, emotionally, logistically. But one thing is true across the board: a townhouse like this isn’t just an investment. It’s a legacy, a home base, and for many, the result of decades of hard work.

Whether you’re looking to stay put, tap into your equity, or consider selling for the next chapter, it helps to have someone walk you through the options — not just the numbers, but the trade-offs, timelines, and feelings that come with them.

If this sounds like you or someone you love, I’d be honored to help.