Property Zone Question

[Mark Rocha]

Hello BP! New California REI here...

I am currently in escrow on a 4plex, hoping to close early September and begin putting my invested money to work. I have come upon a hiccup and am not sure the extent that it would affect my REI plan.

I recently received news that property I am looking to purchase had a zoning change in 03/16. The zoning of the property was changed from (R) Residential to (O) Office. The property had fire damage and was properly restored and permitted by local county inspectors, however, the zoning of the property changed with it. Now my questions are these:

1. If my offer accepted was under an FHA loan, ideas on whether my financing option is still available?

2. If I could proceed with my financing, would this rezoned property provide more, less, or no correlation between the property value?

3. Are there any legal issues to consider with a 4plex being built on an Officer zoned property lot?

4. Selling this property in the future through a 1031 Exchange, would this zoning limit my options to only other Office zoned property? Would it not allow me to roll into a different residential or commercial property?

Side Note: I have posed these similar questions to the lender/zoning authority/Title company that I am specifically using, however, I was looking for a quicker response and knew that I could count on the experienced investors here at BP. 

Any and all information/personal experience/advice is welcome and appreciated! Thank you all in advance!

Mark R.