Converting SFR to Multi?

[Bosko Mijatovic]

Does anyone have any experience with converting SFR to a Multi?

My GC pointed out a unique strategy but will it work?

So I have been looking at 3 to 4 bedroom SFR because Multi's in the area are either scarce or wouldn't cash flow with an FHA.

My strategy would be to buy a SFR and put up a wall somewhere in the house to create two separate units. If the home is only 3 bedrooms I would most likely convert the garage into a 4th bedroom so that both units are 2/1s. Now if the garage is detached I would most likely just keep the house as is and create a 1/1 in the garage. That being said... what kind of zoning/permit issues would come up? If I plan to occupy one of the units anyway can I just rent out the other unit without permitting the other unit or how exactly does that work? Now on the back end (sell side) if the property is still classified a SFR could I try to just sell it to another investor at that point for all cash?

This would be done in Riverside, Ca just for the record. I will do some more research and see what zoning laws are.