Renovation to a Single Family Or Triplex?

[Grace Lerner]

Hello BP! 

I have recently become excited about a townhouse for sale in my area and I need some opinions. 

First some facts:

The property is currently being used for SRO. It has about 3,600 sqft, and three floors. It needs some updating, but nothing outrageous from what I can tell without a formal inspection. (I mean it has walls/plumbing/electricity so that’s a plus right?). 

Now my question:

Do you think that it would be more attractive to a potential hard money lender if my proposal for this property was to renovate it into a single family home and ultimately resell it? Or if my proposal for this property was to renovate each floor into its own apartment and then sell the building as a three family? 

I can easily find comps for the single family option, which are essentially listed at twice the asking price of this property, but I am having trouble finding comps for the three family option. 

Any experienced financers out there who want to weigh in?

[Jack V. Ospina]

@Grace Lerner Might be wise to check the zoning and land use first and foremost to see if they allow triplex in the land and area. The property appraiser website will have this information. If you can't find many comps for 3 units it might mean it is only zoned for Single family(1 unit). Good luck!