4 Units or 5 Units: That is the Question
Hey All,
I am working on a deal right now with an absentee owner of a 4 unit building... well maybe it is a 5 unit building. I am not certain. There are two units on second floor but on first floor I am still trying to decide.
Take a look for yourself:
Clearly, there are two 1 bedroom units on this floor. On the front side of the building though there is an "office" that has two 1/2 baths but no kitchen or closet in the "bed". There is a passage door along the closest exterior wall leading into the common area hallways.
The rental license shows it to be "4 dwelling units + office (low-rise)" but the county is showing it simply as a 4 unit residential.
Seller is currently renting the space out to a chiropractor on a month-to-month lease. I really do not care either way because if I can pull this deal together I will be converting the space to an additional unit which zoning will in fact allow for.
With that said, I am hoping to finance this via FHA. What I am unclear of is what will the FHA appraiser/inspection would consider this unit? A commercial unit? Maybe as additional rentable space much like parking or storage?
Someone has had to have run into this before. Thanks in advance for your input!