How hard is it to get a property rezoned in Philadelphia county?

[Kevin Coleman]

Hey guys, this is my first post to BP! So my fiancé are looking for a duplex now but we're finding that they are a hard find in our price range. Then ones we find are going to give us the proper ROi we'd like. My question is this...we found a great single famly that has all the workings of a duplex but is zoned single family. As a single family the REturn is minimal for cash flow but for duplex (2 single units) it would be a killer find. How hard is it to get a property rezoned in Philadelphia? Any other suggestions? Any other locations that are good for a rental? We'd live in for about 1 year before my transfer to DC for 18 months. Kevin

[Ethan Giller]

@Kevin Coleman, welcome to BP. In Philly if you are looking to change the use from single family to multi-family (2 units), you need to first look at what the zoning district is (check out property.phila.gov). If it's RM1, you can likely just file for a use change and have the duplex granted by right. If it's RSA3 or RSA5 or some other designation, then you will need to file for a variance since those do not allow for multi-family use. The variance process involves filing for the use change, getting a denial, meeting with the local registered community organization (RCO) to try to get their support, and then going in front of the zoning board of appeals (ZBA) to make your case for what you want to do. There is no guarantee you will be successful. If you are buying in the name of an LLC then you are required to have an attorney for this process (one is of course recommended, anyway). The cost for the variance process is $1-3K depending on how much work you do yourself and how much support or opposition you get, and it takes about 3 months.

Whether it is cost-effective to change the property into a duplex is a separate question to consider.  To do it legally, you will likely need to pull permits including a minor/major alteration permit, and you may need separate permits for electrical, heating, and plumbing, plus you may need draftsman plans or architectural plans.  In most cases, unless the property needs a full renovation anyway, or it's in a very hot (expensive) area, it's not going to make financial sense to go through all this added expense just to get an increased rent roll.  Much better, in my experience, to find a property that is already zoned correctly and laid out correctly for your intended use - the exception being if you can get a property very cheaply that needs a gut rehab, but this is generally not a good strategy for the novice investor.

Philadelphia does have a lot of good deals for existing multi-family properties, in all price ranges, so it is a great city to look for investment real estate.