SFR Designed as Duplex, but Not Zoned as MF

[Ana Marie B.]

Hi BP Fam! So my husband and I came across a lovely property in the SF Bay Area that is zoned as a SFR, but is designed as a duplex -- 2/1 + kitchen in the main house and 2/1 + "kitchen" in the back of the house (both units separated by a locked door). Listing agent placed the 2nd kitchen's stove in the garage, but said once property is sold, stove can be returned to the 2nd kitchen.... There is a separate entrance to the back unit. The property was recently tastefully renovated as well. Neighbors told me that the former owner used to house his in-laws in the back unit.

Owners state in disclosures that renovations were done w/out permits, but that they "believe" work was done to code.  No offers on the table thus far, likely due to the property being overpriced (~$900k) and the "duplex" layout that catches families by surprise.  

My husband and I are interested in selling our home and purchasing a duplex.  We would then live in one unit.  My questions are:

• How much does it cost on avg. to convert a SFR to MF?
• What are possible repercussions to renting out the back unit despite the property being zoned as SFR (i.e. lawsuits, neighbor complaints)?
• Given the above details, would you make an offer? Why or why not?

Thanks in advance and sorry for the long-winded post!