Keep as Single Family or convert to Duplex

[Sam Morgan]

Hi All!

I'm under contract on a single family with an upstairs 2bed/1bath living space. A separate entrance downstairs has another 2bed/1bath living space with no internal connection between the living spaces. It appears no permits were ever pulled for the downstairs. Both will need significant updates and I'll have to pull permits to get downstairs legal. Is it better to leave as an SFR to diversify my portfolio and realize better appreciation, or convert to a duplex for better cash flow? Can I have both if I leave as single family, but rent out both units somehow? This is in NC.

Thanks for any and all replies!

[Will Fraser]

@Sam Morgan, was this home built as a duplex?  If there is a full 2/1 upstairs and another downstairs and you can't tell where an interior staircase would have been then you're likely looking at an older home that was originally built as a duplex OR a home that had a massive modification done to it, putting a 2/1 unit upstairs.  

Either way, it may be more feasible that you'd think to operate these as 2 duplex units -- you'll need to dig into the background of the house from a zoning perspective and see what the area around the house has going on.