How to Buy Multi Family Use when property is Single Family Zoned??

[Susan Franke]

Hi All,  

I'm looking to get another duplex for the purposes of house hacking. We've done it once very successfully and are ready to give it a go again. However, I'm seeing SO MANY properties that are zoned as Single Family, yet they have 2 units - either a MIL suite or just an addition that's been built.  How does this work legally? Does the zoning need to be changed? Will I get insurance for a multifamily or a single?  I'm told by realtors that "its fine"....I'm not convinced.  I'm in Palm Beach County - West Palm Beach. 

[Evan Polaski]

@Susan Franke, I cannot speak specifically to your area, but I will say, there are many houses in Cincinnati (my market) that have at one point or another, converted into a multi-unit house. Some will finish basements with direct entry to either LTR or STR. My wife and I (mostly her) bought a house that was built as a single family, but converted to duplex in the 90s and had been rented out ever since. In the area of town I live and invest, there are already a lot of singles next to true duplex next to quads, so there is less scrutiny in general around it anyways.

The things that I would primarily check is was the work permitted and approved as a separate dwelling unit.  Some areas of the country seem to be very strict about that.  Others seem to not care, as long as the neighbors don't start complaining.  You are smart to not just take a realtors word for it, as they effectively have no real liability if it isn't "fine".  There is slightly less risk if these MIL and additions have been done decades ago, versus last year, but still worth checking with the building department and zoning to understand what their enforcement is.