Appraising Multi Family - Zoned As Single Family

[Evan Vallis]

Hi everyone.

Second house hack underway.. *hopefully, fingers crossed*

The home is a single family - converted to multi family with split water and electrical. 

Based off the city zoning map, it is zoned as R-1 (Residential - Single Family). 

In a perfect world, I get another 30 year conventional with 5% down.. positive cash flow off my current duplex (appraised as a single family), in addition to the income from one unit in the new home, affords me 4 units at $0 out of pocket monthly for me. I would live & remodel one unit in the new home. 

The only monkey wrench, from my understanding, is if the appraiser views it as a multi family. Then my 5% turns into 25% in the lenders eyes. 

My question for any appraisers out there, is this home is advertised as a multi family, but zoned as single family. And is advertised as having the ability to convert back to a single family. 

Will the appraiser abide by how it is zoned, and appraise it as single family despite the split utilities? 

Thanks in advance. 

[Brad S.]

Appraiser Here.
There is a few issues to consider here.
Was it legally converted?
Is it legal non-conforming as @Mike D'Arrigo mentioned?  ..or is it just illegal?
Does zoning allow for duplexes or is it really an sfr with an ADU or guest house?

I have appraised many properties with illegal conversions, additions, etc..

A typical example was when the garage was converted into a unit or additional living space, without permits or in an sfr zoned area which doesn't allow for ADUs. 

if it isn't a legal conversion or is not legally permissible per zoning, then most likely, it would be treated as an sfr with a "cost to cure" adjustment applied to convert it back to an sfr.