Zoning changes

[Warren Rosanoff]

I came across a listing for a 4 family house. The asking price was reasonable and the income sufficient enough to provide a decent cash flow. I was preparing to make an offer when I discovered that the city had passed an ordinance a year ago that will phase out 4 family properties (actually anything more than 2 family) over the next couple of years. Had I purchased this property, it would have been a disaster. Is this something that occurs frequently? Do I need to review real estate law in each jurisdiction where I find a property that looks appealing? I am not an attorney and trying to locate and then understand the local regulations is tedious and time consuming. Have any of you encountered similar issues and how do you overcome them?

[Brett K.]

Warren,

Are you sure the property won't be grandfathered?  There is a similar ordinance in Old Louisville.  A lot of the large houses were converted into multi-family when the area declined decades ago.  The city passed an ordinance that said if one of these dwellings sat empty for a time (~60 mos.) that it had to be converted back to single family; but it allows those in continuous use, or those specifically built as a multi-unit, to remain.  That property could appreciate nicely if it were grandfathered.