Question on Purchasing a Two Family

[Jay Velastegui]

Hey BP Family,

So I'm a newbie investor from NJ....

I know many posts start like this and I always walk away amazed by the amount of time and attention individuals still put into giving their thoughtful advice - so thanks in advance. 

Back to my question, my wife and I have determined that the Buy and Hold method will be our strategy toward our ultimate retirement goals. We're currently looking to buy a 2 or 3 Family or find a Single Family and use FHA's 203k to renovate into a Multi. In either case we will Owner Occupy the property.

We just viewed a Single Family/ Mother-Daughter a few days ago and will go to revisit it this weekend with a general contractor to get some estimates before putting an offer. 

Here's the main bullet point to note - the property is listed as a Single Family however after doing my due diligence and contacting the township I found that it was converted into a Two Family in 1965. The township agreed to zone it as a Two Family because it's somehow grandfathered in due to its previous status. 

The current homeowner was illegally renting out the upstairs unit which is fitted as a one bedroom apartment and is why he listed it as a "mother-daughter."

What should I be looking for when I go to revisit the property this weekend? What questions should I be asking or what further due diligence should I be doing before determining whether or not this is a property worth investing?

Your feedback and expertise in this matter are greatly appreciated and my apologies for the long winded post.

All the best!