Converting a 5 plex into a 4 plex?

[Account Closed]

So, I'm looking at a 5plex that needs renovations, no structure stuff, it's just old, damaged windows, doors, too many layers of paint, old cabinets, etc.. I Want to use FHA's 203k program to buy, and finance the renovations. it's a 5 unit, which would normally require commercial financing, but if my renovations include converting into a 4 plex, it should be eligible for the 203k. Anyone have any experience or advice on this subject? So far I'm aware of several things I have to be taking into account.

Property zoning?

renovation costs (including possible permit requirements)?

Architecture requirements?

Does anyone have any advice or experience with this kind of thing? Any additional concerns?  I'm sure it's more expensive than just knocking down a wall.  Most likely it would be merging two kitchens into one, covering one exterior entrance, and turning one extra living room into another bedroom, anyone ever undertaken a job like this? any advice, especially on costs?

Also I'm looking for a good real estate agent west of portland, OR. that is experienced in rental comps.  Any advice on where to look?

[Sam LLoyd]

In my neighborhood this has been done many times.  There is one builder that would build a 5plex, but never finish the 5th unit.  That unit would be 'storage' until sometime down the road (after bank financing), when the owner wanted to finish out the kitchens, bath, etc... and get more rent.

My thought, is that if the plex needs a lot of work, there might be one kitchen that needs to be ripped out, at which point you can call the unit storage.  This probably wouldn't work if these are large units.  Also, zoning would be the first thing I'd look at.  The buildings where I've seen this done are unzoned.