How to turn a 2 family into a 3 family

[Angelika Mercado]

Hello,

I purchased my first property this time last year. It is currently a 2 family however there is a walk up attack and a very high ceil basement. The basement has its own door that is on the side of the home, I mention this as it could be its own entrance for the unit. I’m unsure how to get this started and if it’s even legal. I honestly don’t have an idea on how much the whole project would cost however I do know that it has the potential to make about $1,000 a month as a rental unit. I am wondering if I should consider adding a unit either to the basement and/or attack. If so, how do I get this started?

I am in the process of trying to figure out my next move as a real estate investor. My current LTV is 93% as this is a FHA loan. My thoughts are adding a unit will bring up the value therefore lower my LTV and give me the opportunity to get another FHA loan or take out a HELOC against the property to purchase my second multi family.

Any feedback or opinions is greatly appreciated!

Thanks!