All Forum Posts by: Aubrey K.

Originally posted by RAY BROGDEN:

If you really want the property tie it up and go to the community/town hall meetings and ask the panel there for their support and then go to the zoning board for a variance to allow the tri-plex. You may open a can of worms but that is the proper way to do it.

Thank you all for your thoughts. They are very helpful. Ray and Jon mentioned being upfront and direct when addressing the issue with the city. When my realtor did her research she asked about the possibility for rezoning or a variance. She told me that she was vague about the fact that the third unit already exists because of a concern about "getting the seller in trouble." I am not sure the city gave her the correct response about a variance because she was not completely forthright.
To me, the seller has exposed herself to the risk of getting in trouble in the first place and while I have no interest in "exposing" her, I feel like the fear of that should not stand in the way of an opportunity for me.
Does anyone disagree that the best way to address this is to "tie up the property" and then do my due diligence?

Hey Everyone,
I am new to the real estate investing business and am looking to make an offer on my first property shortly. There is a particular property that I like, but it has some "issues" so I thought I would get some opinions from the pros.
The property: a duplex with 2 one bed/one bath units and an additional seperate unit they are calling an "in-law."
The scenario: My husband and I are first time home buyers, so we are looking to take advantage of the $8000 tax credit and buy income property at the same time.
The issue: We favor this particular property the most because of the location, condition, price and a motivated seller. The problem is twofold: 1) the property is not zoned for a triplex 2) the "in-law" was formerly a garage and the work done on it was never permitted. From the research my realtor has done, the city will not allow the property to be zoned triplex. If we were to buy it, I am aware that we should do so based on the income only from the duplex. If we made this purchase, we would live in the "in-law" apt and benefit from the full cash flow on the property.
Our concern: I am aware that many people rent units that have not been properly zoned, but I am worried about getting into something like this from the get go since it is not something that can be fixed. Also, I don't know how we would report the income without raising red flags (this will be a FHA purchase if it makes a difference).**What is interesting is that the property is right across from the police station and a block from city hall and it is obvious that the "in-law" is currently occupied.**
Obviously, the concern is what kind of situation could we find ourselves in if the city figures out that the additional unzoned unit is being occupied and what is the liklihood of that happening? Is this situation one that a newbie should avoid and if so, does that mean ignoring all properties with "in-laws"?

Any thoughts/opinions are appreciated!