4-Unit ---> 6-Unit Conversion... Good or Bad?

[Steve DellaPelle]

Hi All,

I am closing on a 4-unit property soon with an FHA loan. The attic used to be 2 additional units (one on each side) but suffered a small fire 30-some years ago. It is still in decent condition (structurally) but would require a full rehab.

If I have the potential to convert these back into 2 more units, which would give me a total of 6 units, should I do it? I know that this would bring me into the commercial side of things and I was wondering what the implications would be...tax-wise, FHA loan-wise, etc.

Thank you!!