Scranton Multifamily deal - Possibility of changing 2 units to 4 units.

[Ricardo Polanco]

Good evening everyone, I am evaluating the possibility of buying a multifamily property in Scranton, at this moment it has 2 apartments that only need cosmetic repairs and it has a big 2nd floor unit that needs a full repair. That 2nd floor unit I would like to divided into 2 apartments. The property has 2 electric meters and one water meter. I called the zoning department and they are telling me this is a Mixed use building (N zone). My question is, does anyone know if it is possible that I can convert the building into a 4 units apartment with that Mixed Use zoning or do I have to request a change of zoning? I would like to qualify for a BRRRR after everything is finish.

Thank in advance for the information.

[Anderson Banegas Cerrato]

“Ricardo, I like the way you’re thinking—turning a 2-unit property into a 4-unit is exactly how you create value and scale quickly. Here’s the approach I’d take, blending strategy and action:

1. Confirm the zoning limitations: Mixed-use zoning can often allow for more flexibility, but you need to get the exact details. Call the zoning department again, and this time ask specific questions: Is a variance required, or can you proceed as-is? Make sure you’re crystal clear on their requirements before moving forward.

2. Leverage local experts: Connect with an architect or zoning attorney familiar with Scranton’s rules. Sometimes they can find creative solutions or know the right way to present your case to get approvals.

3. Prepare for additional costs: If you’re adding units, you’ll likely need to address the water meter situation and possibly upgrade utilities. It’s better to build those numbers into your pro forma now so you’re not surprised later.

4. BRRRR with a bang: If you can pull this off, the value-add potential is huge. Focus on what the rents will look like post-renovation with 4 units instead of 2, and have a clear game plan for refinancing to pull your capital back out.

This is the type of deal where doing your homework upfront pays off big time later. Keep pushing on this—you’ve got a property with a lot of potential. Let me know how it turns out; I’m always looking for investors with vision like yours!”