Commercial lending requirements for a 5 unit located in SF zoning

[Jeff Hornberger]

HI BP friends, I need some insight. Im currently about to list a 5 unit apartment building for sale in Spokane WA. The property is an ex adult family home that has been converted 10 times over. It sits on 2 acres and located right behind this property are apartments. The seller swore up and down it was zoned multi-family etc but when I did some homework on the zoning it actually turned out that it was zoned single family and that currently it has a non-conforming use granted on it allowing it to remain a 5 unit building until someone rebuilds or if its destroyed and one had to rebuild. They would only be able to rebuild a single family home. Im guessing this will be a sticking point for any lender because they will no longer to be able to build a 5 unit building should something major happen to the house.. Does anyone have experience with this type of a scenario. Should I only be offering this property as cash terms only? Thanks in advance for the replies!