Zoning RS-1-7 San Diego

[Keeya WangJones]

Hi BP, I running into garage converted granny flats/studios. We have a housing crisis here in San Diego. I'm looking at a deal in the SDSU (Rolando Village) area. Minimum $499k - $569k. House was bought literally 2 months ago at $411k. Flipped to go on the market at $499k. The tax record is not showing granny flat. Is it too soon to show on tax record or is it not permitted? Also house originally stated 3/3. They added or converted some space to a 4/3. Investor who did the flip, did a clean job from what I can tell before a true inspection. Permits are unknown for granny flat and additional room. Seller has transactions listed as cash, fha, va, conventional. I would purchase as FHA. But here is the kicker: FHA is going to do their own inspection and if things are not permitted the deal is off. Perfect location for a rental. A lot of positives. What would you do? I would really like the seller to provide docs the permits are legit for granny flat and extra space if any? If not, get it done from the city of San Diego. Not having the property permit could cause me a lot of trouble when I try to sell it later if something better comes along in 5-10yrs. My agent is only doing comps that match tax records. Any zoning and permitting advisors on BP in San Diego? Cheers!

[Justin R.]

@Keeya WangJones You can go to the city (DSD department, second floor) and have them pull the records for you - that's definitive.  But, that area is probably about 98% likely to be converted illegally unless unless the home is very close to the El Cajon Blvd strip.  It's very common.

If there's enough parking onsite, it's not too bad to get the living space in the garage permitted (couple months, couple thousand dollars as long as work was done correctly).

Trying to get an additional dwelling permitted won't happen... even if it was built when the zoning supported it, and you can prove it, you'll need a variance - long time, lot of money, risky.

End of the day, lots of properties change hands that have non-permitted  things, and that property will be bought by someone who will get a good rent from the studio.  And, when it sells next time, that square footage won't be included in the appraisal, but someone will buy it again.

Either that, or the owner will screw up, have the city visit the property, and get slapped with a code enforcement case to convert it back to a garage.