Converting a duplex to SFR - worth it? Kansas City, KS / KCK

[Sandi Hague]

We're under contract to buy a duplex on N 54th St. in Kansas City, KS. I'd call it a B- area: dead end street about 3 blocks long, mostly brick SFRs, nicely kept.

During due diligence, we found out that when the city annexed the duplex it was never zoned R2, and it looks like they're unwilling to do that now. We're waiting for the final word, but it looks like the planning department will not support spot zoning, but will recommend it be converted to a single family.

We think we had a pretty nice deal on it as a duplex. We would have put $35k - $40k in before renting it. However, we don't think it's such a good deal if we need to convert it to single family. Seems like the savings we gain by not putting in two furnaces, two sets of kitchen appliances, etc., would be offset by needing to redo ductwork, plumbing and opening up walls. The rent as SFR wouldn't be as high as for two units, and there's probably not enough room in the price to flip it. At least not for us, since it would be our first flip.

Also, we're concerned the resulting SFR will be odd - two driveways, two front doors, etc., - unless we make changes there as well.

Anyone have thoughts on this?

Thanks

[Mike Wood]

@Sandi Hague Does your city have a process for zoning variances? If so, it might be worth talking to them, especially if it is actively being used as a duplex and has for an extended time.  I know my city has strict zoning regulations, but if property has been used continuously, they will consider letting the property continue to operating as it is.  You could revise your office to be contingent on getting the ruling on the zoning department.

In my city, SFH sell for more $/ft2 that duplexes. There are lots of conversions, as it makes a small duplex into a nice medium/large single family house.