Hey all,We are currently dealing with the City of Phoenix about the classification of a property that we purchased as a single family home with an attached casita.

A lender looking at the property this way will care less about the classification and more about the income.

I've never personally run into this 'bed and breakfast' classification issue - and it sounds like something that would be determined by the appraiser.

Two Questions - 1) If the property is zoned single family with one tax ID and one utility would the appraiser push back on the zoning/tax classification of the property. 2) Do the ADU valuations count toward the appraisal of the property? 

While I intend now to be an active broker, at the time my CPA said I only needed to devout 750 hours per year to real estate, not including investment time, to get this classification.

For example our assessor has just changed our classifications to commercial so they can use the commercial (Much higher than residential rate) for our property taxation value.  

Many sub markets, such as condos in DC, Boston and NYC are all out buyers markets in that asset classification. 

The program must benefit employees who qualify under a classification that does not discriminate in favor of highly compensated employees or their spouses and dependents [IRC Sec. 127(b)(2)].c.

Depending on the company they may use different classifications for the use of the property so the costs could vary significantly.  

I recommend you just change the classification from commercial to a residential category.