Turning a 4Unit into a 5Unit Property

[Kyle Swengel]

Hello BP!

I invest in Tucson AZ and I have a 4 unit property in 85716 that used to be a 5 unit until around 2017.

I understand the implications of it being a commercial property when it comes to permitting, zoning, and financing. What else should I be considering? Seems like utilities might be higher and Wi-Fi will be a bit higher for moving things to commercial.

Just some background, I househack this fourplex and rent all of the other units to mid term guest/travel nurses. When it’s a 5 unit property it’ll all be rented to mid term guests and nurses. I and am putting solar (purchasing) on it as an owner occupied property since I pay all of the utilities. I will get the 30% tax credit back and wrap in a few electrical and plumming changes that need to happen for it to be a 5 unit and get money back for those too since they are related to the solar.

What am I missing? What red flags are you all seeing that I’m not?