Zoning Question Arizona

[Joel G.]

Hey BP, 

I'm currently under contract on a property that has some zoning issues in Phoenix and I'm wondering whether any of you have any experience in rezoning in the city of Phoenix from a SFH to a multiunit?

Specifically, the property I'm looking at has been a duplex since it was built, and it has been rented as such. It is zoned as a duplex with the county (I think); however, it is zoned as SFH with the city of Phoenix. I'm wondering whether this is a red flag, or if this is an easy issue to deal with.

Thanks for the help!

[Jeff Kennedy]

I'm not in Phoenix, in fact I'm in California. I had the same issue. The one thing you may need to look out for is financing obstacles. Fannie/Freddie will not lend on properties that are zoned in a way that will not allow for a duplex to be rebuilt (if the current one is destroyed in a fire). I would urge you to consult with an experienced lender/broker. Even if you plan to pay with cash, this is still a factor because lendability will affect overall value.
Just my two cents....