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Updated over 8 years ago, 03/29/2016
Does adding ADU to 4plex change from residential to commercial?
This question may be specific to places like Portland where the city encourages density by allowing accessory dwelling units (ADUs) to be added to properties in residential zones.
If I purchase a 4-plex (zoned residential R2 in Portland) and rehab it to include an ADU, can I still finance with a residential mortgage? Because the permitting process is different to add an ADU vs a bonafide extra unit, and because SFRs with ADUs in Portland are still classified as SFRs, my hunch is that an ADU could be added to a 4-plex yet the property would still qualify as residential for lending purposes.
Anyone have any concrete knowledge about that? @Charlie Fitzgerald, do you know?