Adding 2 units to multifamily property with a garage conversion

[Brian Wensel]

Hi All,

I bought a 3 multi-family family property back in July with an FHA loan (I am house hacking and renting out the other 2 units.) On the property there is a large garage with the same property address that needs a complete rehab, I would like to convert it to another housing unit or 2. My issue is I am not sure the implications of doing so. I understand that converting the multi-family from 3 -> 5 units the property would then be considered commercial. Given I had the space, proper zoning and capital to do so, do you believe I should add an extra one or two units and why? Also, if you have any suggestions on the type of construction loan/lenders I should look into that would be greatly appreciated as well!

Thanks in advance for any of your suggestions!