Purchasing Unpermitted units?

[Laura Damico]

Hi I am interested in purchasing my first multi-family that has 4 units but 3 are unpermitted. What are the costs of getting these 3 units permitted in southern California? Can i ask the seller (seller is motivated to sell, just dropped 10k) to get the units permitted? Also in regards to financing- would it be best option if the seller chooses not to get them permitted to do a seller financing option? Would it be worth it to purchase an unpermitted units?

Thanks for all your input!

[Matt Devincenzo]

The first question is, what is the allowable number of units based on zone/density? The second is how many units 'could' theoretically be allowed utilizing ADU/density bonus rules? And then the final question is what you asked which is how do you permit them? Assuming the density only allows for a SFR, then you'd be wasting your time trying to permit all three. At best you may be able to get one permitted as an ADU...and one as a JADU but that would require owner occupancy. From what I've seen it's not likely this project is worth it. The discount needed is usually not something the seller is willing to accept, at least at this point.