Convert a single family into a duplex

[Wesley Clark]

Hello Everyone, I am analyzing my first deal and think I have a great opportunity. My seller has a four bedroom single family house that they desperately want to get rid of. New roof, new furnace, newer windows. The house looks and like a duplex, has two identical sides (2 br / 1 ba ea). They have been renting it out as a duplex but legally it is a single address. What is the process / cost to legally make this a side by side? Utilities are not sub metered. One half is vacant and needs new flooring, dry wall and paint. The other unit is occupied and renting for $750/m but could use similar upgrades and demand a higher rent. House was just appraised for $160k. Any advise on how to make it legally a duplex would be awesome!

[Tyler Brown-Lewis]

Wesley, it is good the house has two separate sides that seem that they can be divided. Getting an electrician to divide utilities shouldn't be too bad, you will need an hvac person as well for a extra furnace. Are there at least two separate legal exits to each unit? In my experience with zoning it really is dependent on the city and county your house is located in and what does neighborhood consist of? Some counties are strict when comes to zoning while some are more lax and you might find yourself having to go in front of a zoning board and getting their approval so the best thing you can do is contact your county and getting an inspector out to the house an start the process. Neighborhood matters because if the house is surrounded by other multifamily housing then you have a better chance of being granted the title of multifamily for your home as well. 

Lastly, I really advice you not rent the place out to two different families or people prior to getting it properly zoned as a duplex. If there was a fire or incident in the home your insurance company will not cover the home when they find it was not being rented under proper use and it could be a legal nightmare from a liability standpoint with tenants.