My first multifamily may not be permitted.

[Jordan L.]

Good evening everyone,

I'm a seasoned SFR investor and just closed on my first duplex a couple of weeks ago... or so I thought.

It isn't confirmed yet but I've just learned that the property may not be permitted as a duplex.  This is entirely foreign territory to me, as I've only purchased relatively new single family homes until now.  I haven't had to deal with permitting or inspections with the exception of a couple of HVAC replacements.

How big of a problem am I potentially facing here?  Could I be doomed to not being able to rent the property as a multifamily?  Could I rent it as separate units but not be able to have the tenants pay for separate utilities? 

 The property was advertised as a duplex with units A & B.  Zoning on the property is R-8 residential.  My agent is looking into the permitting.

Compounding the problem is that there have been additions made that are likely not part of the initial footprint of the building.  I am unsure if these additions are permitted.  Do municipalities tend to want to work with new owners if they bring everything up to code and have the property reassessed?  Or... am I potentially facing a teardown scenario?

The property is in a small city in NC.