Single Family Triplex Situation Help?

[Willem Nichols]

Hey Guys! I have verbally accepted an offer on a unique house. It is technically a single family home but built in a unique way to where 3 sections of the house have there own exterior entrance, kitchen, private bathroom/bedrooms. The sections have doors between each one that when locked, separates them from each other. There is just one electric meter for the house.

Additionally, it has a boat lift on a river that leads to the ocean, a 3 car garage, and extra land with RV connections already in place. It is also zoned R2 so potential to build another separate unit from what I understand. I intend to live in one section and rent out as much of everything else I can. What would be your strategy? All inclusive yearly leases, short term vacation leases, Airbnb (all normal in the area)? Are there any laws, insurance, or tax implications I should consider? I just want to make sure I won’t run into any surprises down the line. I am going to be getting a conventional loan with about 20% down. It’s about 700k so being considered a single family home, loan limitations prevent me from putting down much less. I appreciate all your help!

[Stephanie P.]

Originally posted by @Willem Nichols:

Hey Guys! I have verbally accepted an offer on a unique house. It is technically a single family home but built in a unique way to where 3 sections of the house have there own exterior entrance, kitchen, private bathroom/bedrooms. The sections have doors between each one that when locked, separates them from each other. There is just one electric meter for the house.

Additionally, it has a boat lift on a river that leads to the ocean, a 3 car garage, and extra land with RV connections already in place. It is also zoned R2 so potential to build another separate unit from what I understand. I intend to live in one section and rent out as much of everything else I can. What would be your strategy? All inclusive yearly leases, short term vacation leases, Airbnb (all normal in the area)? Are there any laws, insurance, or tax implications I should consider? I just want to make sure I won’t run into any surprises down the line. I am going to be getting a conventional loan with about 20% down. It’s about 700k so being considered a single family home, loan limitations prevent me from putting down much less. I appreciate all your help!

"Unique" house is never good from and appraiser's or lender's perspective.

You first have to make sure the renovations that were done to the house to make it feel like a 3 unit were permitted, see if any internal obsolescence was created when the "apartments" are closed off etc... and then see what the zoning will allow.  Ask your Realtor if there are any comparables with that many kitchens and bathrooms.

If I was young and single and had a house that was set up like that in that kind of location, I'd AirBnB it all day long.