Property is seen on Zillow as SFH but in actual it is a 4 units.

[Katrina Dividina]

What can we do, I am currently in a contract with this property, it is originally a single-family home and the owner added (3) 1 bed 1bath units at the back (without securing permits). So its a total of 4 unit property now. Its in a small town (20k population) and has no comps. Recently appraised for 240k, I was able to negotiate to 215k with 30k rehab budget (more on cosmetic issues) . My question is, If I refinance after rehab in 6 months, How can I increase the property value aside from renting all units? Is there a way I can inform the zoning to change it to multifamily? (zone is currently mixed use). 

[Lucia Rushton]

@Katrina Dividina did you use a investor specialized Realtor ?

There are plenty of properties that have been modified and mostly without permits. I would check with the zoning and appraisal district asap. If it is not zoned for multifamily and the city has no plans to update that subdivision, you may want to chalk this up to an educational expense.

If you go forward with it, know that you are now informed and will operate under those conditions and risk.

As always, just my opinion, and not written by Ai