Property is legally a duplex

[Ayne C.]

Looking at a triplex and the ad says "unit is legally a duplex".  What are the ramifications of that?  How do I do my due diligence in confirming and or remediating if needed?

Thanks.

[Andrew B.]

It means its a duplex with a third unit that the city does not recognize, (illegally renting it out). I used to live in a duplex with an illegal unit in the basement. The person in the basement almost started a fire which caused the fire department to come out, and when they noticed the third unit they threatened the owner with $10k plus in fines. Only reason he didn't get fined was because he knew the fire chief.

You have to find out if its a zoning issue or a codes issue. Some issues like egress windows or exposed pipes can be fixed and you need quotes for this. Other issues such as zoning can be more complicated as the town may not approve you changing the zoning from a 2 to 3 unit. My suggestion is go to the town and see what the requirements would be to change a 2 unit to 3 unit. (Don't tell them you're buying an illegal triplex. Tell them you may buy a duplex and want to convert.)

When you evaluate the deal, evaluate it with only the 2 legal units contributing to cashflow as that is the only guaranted income.