Multiple Exits, House Hack vs Rezone vs Wholesale vs Rehab

[Ethan Perry]

Hello All, happy new year! I hope 2017 is off to a good start for you!

We visited with a seller today who called in response to a letter we sent. To make a long story short the seller is elderly, has been in the home for 40 years, and will be moving out of the state in a couple months. We would like to purchase the property but I think it has more potential then a SFH.

As it sits the home is a 5 bed 2 bath. 3/1 on the main level, 2/1 down stairs. Lower level has its own entry point. The home is in great shape just very dated and would need cosmetic updating.

Our thoughts for exit strategies are as follows in order of interest...

1. House Hack. Live up top, rent out bottom, will need to add kitchen down stairs

2. Rezone to duplex. Seal units off, split utilities, the works

3. Buy or Wholesale the property to renovate as SFH

4. List it retail (my wife is a realtor)

We have never done something like this so not sure where to start. What would I need to be able to rezone to a duplex? Is that even what I would need to do? Do I still need to do that if I live in one of the units? I really want to get into rentals and think creatively to do so but is this forcing it?

We are finishing a rehab next month and could use some of the proceeds for down payment a longer term loan. Possibly BRRR strategy?

Thanks in advance for the help! 

[Jay Hinrichs]

land use and planning issues are not solved on the internet unless you happen to get a developer in your particular town to chim in here.

YOu want to simply walk into the planning department of the town the property is in.. and if its not in a town then the county planning department.. sit down or stand at the counter and ask these questions of the duty planner... this will give you an indication of what can be done if anything given the zoning.

you can also talk to a land planner in your city or county  ( fee based) or lastly most civil engineers that do residential work will know these answers as well.

that's the bottom line go to the authorities that control these issues and ask them.