Converted vs. Intended Multi-Family Properties

[Kate Kedenburg]

Hey everyone!

I'm interested in the some input on the idea of "converted" multi-family properties vs. "intended" multi-families. We have recently moved to the Tacoma, WA, area, and in my search for rental properties (2-4 units), I've noticed that especially in some of the more established neighborhoods, there exist a plethora of properties that were built as SFRs but over time have been converted into duplexes, triplexes, and 4-plexes. My husband and I aren't seeing 100% eye to eye on the idea of investing in properties like these - he wants to stick only to properties built as multi-families, while I am more open to the idea of these converted SFRs.

Help us settle the discussion! I know there can be serious issues with older SFRs that have been converted - on some of the podcasts I've heard stories about inadequate plumbing, electrical, sewer(?) issues, etc... what else should I know about regarding these converted properties? Does anyone have any success or horror stories that can help me solidify my position or change my mind? Tips for estimating maintenance reserves, anything at all that you think might be helpful!

Thanks in advance, everyone!