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User Stats

6
Posts
2
Votes
Sara Ball
  • Investor
  • Seattle, WA
2
Votes |
6
Posts

Converting a grandfathered duplex to SFH + ADU

Sara Ball
  • Investor
  • Seattle, WA
Posted

We have a nice, large lot (7500sf, level, no trees) in a prominent NR3 zoned location in Seattle, currently serving as a grandfathered duplex. With the 2019 ADU law, we are considering converting the duplex to a single family home plus ADU, so that we can build a DADU in the ample backyard. Does anybody know about the process to convert a grandfathered duplex to an SFH + ADU? We would love to hear from anyone who has been through is process! Are there any foreseeable downsides to this conversion? What kinds of code updates should we expect this to trigger? It seems like a really cool opportunity, so we'd love to participate. Thank you so much, BP community!

User Stats

243
Posts
246
Votes
Eric Yu
  • Real Estate Agent
  • Seattle, WA
246
Votes |
243
Posts
Eric Yu
  • Real Estate Agent
  • Seattle, WA
Replied

Nice! This is an awesome opportunity for you. I'd recommend reaching out and speaking to a real estate attorney about how to best approach this. 

I haven't gone through the conversion you're trying to do, but I'm currently working on building out a DADU on an NR3 lot myself, so happy to knowledge share what I learn along the way. Feel free to DM me to chat more!

User Stats

882
Posts
1,967
Votes
Sherief Elbassuoni
  • Realtor
  • Bellevue, WA
1,967
Votes |
882
Posts
Sherief Elbassuoni
  • Realtor
  • Bellevue, WA
Replied

@Sara Ball, I did that and I can show you the steps!

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User Stats

6
Posts
2
Votes
Sara Ball
  • Investor
  • Seattle, WA
2
Votes |
6
Posts
Sara Ball
  • Investor
  • Seattle, WA
Replied

@Sherief Elbassuoni Thank you! I see your number in your signature - I will give you a call this morning.

User Stats

2
Posts
0
Votes
Replied

@Sara Ball and @Sherief Elbassuoni, I am in a similar situation where I need to convert duplex SFH + ADU to be able to build a DADU.

Sherief, if I may, I would love to connect with you and learn from your experience. Sara Ball, did you end up going through the process?

Best,

Parth

User Stats

1,445
Posts
908
Votes
Jay Hurst
Lender
  • Lender
  • Dallas, TX
908
Votes |
1,445
Posts
Jay Hurst
Lender
  • Lender
  • Dallas, TX
Replied
Quote from @Parth Panchal:

@Sara Ball and @Sherief Elbassuoni, I am in a similar situation where I need to convert duplex SFH + ADU to be able to build a DADU.

Sherief, if I may, I would love to connect with you and learn from your experience. Sara Ball, did you end up going through the process?

Best,

Parth

 @Parth Panchal One thing you would want to consider is that Fannie/Freddie will NOT finance a 2-4 unit building with an ADU. So, that can potentially limit your buyers when/if you go to sell. There are non-conventional programs that will allow on an exception basis but not ever one can qualify or will even know about those programs.

See here for Fannie:  https://selling-guide.fanniemae.com/Selling-Guide/Originatio...
 

  • Lender Alabama (#69841), Virginia (#MLO-35815VA), Texas (#323441), Pennsylvania (#64778), Oregon (#323441), Louisiana (#323411), Iowa (#31166), Georgia (#55988), Florida (#LO40080), and Colorado (#100506224)

User Stats

6
Posts
2
Votes
Sara Ball
  • Investor
  • Seattle, WA
2
Votes |
6
Posts
Sara Ball
  • Investor
  • Seattle, WA
Replied

@Parth Panchal I did and it was relatively painless. In construction phase now. Happy to discuss - feel free to call or DM me!

User Stats

2
Posts
0
Votes
Replied

Thank you Sara!, DM sent

User Stats

3,085
Posts
2,592
Votes
Matt Devincenzo
  • Investor
  • Clairemont, CA
2,592
Votes |
3,085
Posts
Matt Devincenzo
  • Investor
  • Clairemont, CA
Replied

@Jay Hurst I thought Freddie had actually chamged their guidelines to finance MFR with a single ADU...

https://guide.freddiemac.com/app/guide/section/5601.2

User Stats

1,445
Posts
908
Votes
Jay Hurst
Lender
  • Lender
  • Dallas, TX
908
Votes |
1,445
Posts
Jay Hurst
Lender
  • Lender
  • Dallas, TX
Replied
Quote from @Matt Devincenzo:

@Jay Hurst I thought Freddie had actually chamged their guidelines to finance MFR with a single ADU...

https://guide.freddiemac.com/app/guide/section/5601.2


 That is great!  I had not noticed that change. 

  • Lender Alabama (#69841), Virginia (#MLO-35815VA), Texas (#323441), Pennsylvania (#64778), Oregon (#323441), Louisiana (#323411), Iowa (#31166), Georgia (#55988), Florida (#LO40080), and Colorado (#100506224)

User Stats

1
Posts
0
Votes
Replied

@Sara Ball I am also looking to convert my duplex into an SFH+ADU and wondering if you'd be willing to talk with me for a few minutes about the process you went through successfully. I'm new to Bigger Pockets and still figuring things out around here ;)

User Stats

6
Posts
2
Votes
Sara Ball
  • Investor
  • Seattle, WA
2
Votes |
6
Posts
Sara Ball
  • Investor
  • Seattle, WA
Replied

Sure, happy to chat. I just gave you a call from your DM so you have my number. Feel free to reach out there.