Converting a 4 unit to a 6 unit - Pros vs Cons

[Jake Rhodes]

Hey All!

We recently acquired a small multi currently recognized as a "Legal 4 unit" by the city.  This unit is separately metered and has 6 units with 6 entrances and 6 paying tenants.  

We are wanting to get it recognized as a "legal 6" to increase its value in the eyes of the lender.  What are the Pros vs. Cons of doing this?  I'm sure taxes will increase, but I don't want to open a can of worms on other issues.  

Ultimately, we want to rehab the building and use the additional units to pump the value for a long-term loan.  

Thoughts???