Triplex zoned as a duplex

[Elizabeth Chiang]

I'm looking at purchasing a Triplex. I went to the County Auditor website and saw that it is zoned as a 2-family and land use is also 2-family. The city requires a Point of Sale Inspection which includes interior as well as exterior. The Point of Sale states type of structure as two family, though the inspector obviously saw that there were three units.

My plan is to purchase cash, fix up the property, refinance, and rent. What issues may come up due to the zoning? Will refinancing be an issue (apprasial as a two family instead of three family)? Will getting sufficent property insurance be an issue? The property is currently fully rented and the owner hasn't had any issues in 10 years he has owned it.

If it matters, property is in state of Ohio, Cuyahoga County. 

[Kenneth Garrett]

@Elizabeth Chiang

You definitely should contact the city for verification of the zoning.  It is possible you are considered legal non-conforming.  This means the property was at one time zoned for 3 units and after it was established, the city changed the rules.  If the city tells you it’s ok as a non-conforming building ask for it in writing for documentation.  Typically this would come up when the appraiser completed their evaluation.  Since you are paying cash, there is no appraisal.  I always submit a FOIA request (Freedom of Information Request) to the city before I buy to confirm zoning, fines, judgments, violations, outstanding water bills or other issues, ongoing code enforcement issues, etc.  There is no charge and it’s part of my due diligence.  No cost for the information, it’s public information.

Good Luck.