Would you buy a multi-fam with an illegal unit?

[Brad E.]

Im in contract on a property that was listed as a triplex.  I have recently confirmed with the county that it is zoned as a duplex and is out of compliance as a triplex.

I think the zoning can be obtained with a $1500-2000.  I do not know what the implications are for insurance and or what other risks this poses.

I am considering going back at a much lower purchase price (as if it was a duplex) but my agent has already told me she doesnt think they will do that based on conversation with the seller agent.

In the end I think I can make the numbers work but it feels like I am assuming a lot of risk.

So right now I am considering a price that lands somewhere between what I am in contract for and what NOI from a duplex would value it as.

Just curious about the approach or lens others would use to handle this type of situation.  Thanks in advance.