Converting Boarding House to 8-plex?

Question

Right now I have a "6,000" sqft property. It is grandfathered in as a boarding house; I have no experience with re-zoning a property. What is the likelihood of a zoning committee allowing a change of use to a 8-plex (or more)? Is it standard to have to do 100% of the work right off the bat? Or can I do it in phases? I would love to convert this property into 1BR/2BR units. I'm not too keen on house hacking to 8 random people! Any insights on prior experiences are appreciated!

Benjamin Morris · Answer

@Kyle Penland I got the property at a steal for $70k. Currently living there and renting 4 of the bedrooms; I just feel there is that untapped potential in the property. Instinctively I feel that I should make it a 4-family for an easier sale down the road, and if I can do that for under $150k - this was a better outcome than buying a 4-family already on the market. I like to hold my properties, so if 8-plex is allowable, I feel its a more profitable end goal. (Especially since there is little return on having larger units).

Kyle Penland · Answer

@Benjamin Morris Hope so...Sounds like a good deal..But also sounds expensive.  Good luck!

Benjamin Morris · Answer

My thoughts are each bedroom can reasonably fetch $500 each - with all utilities included. If I break out out into 2 bedroom units, they can get ~$850+ each without paying for any of their utilities.

Kyle Penland · Answer

Why don't you just convert one to a stand alone apt and keep the boarding house?  Just a thought.

Jeff B. · Answer

Zoning regs vary, BUT multifamily units are usually classified (at least in Calif) as R2 while SFR housing is R1.  You will need to seek a ZONING WAIVER and that's never a cake walk :sigh:

Brian Tome · Answer

@Benjamin Morris

This is a great question for a planning and zoning attorney in your area.  These type of determinations often hang on the whims of neighbors and local elected officials, so knowing the landscape and having a consolidated strategy is paramount before you breath a word of your plans to anyone else.

Be very cautious and work with an attorney to develop a good sales pitch and solid legal argument.  You could literally mention your plan to a neighbor who nods his head and agrees one day and have folks picketing the property a few days later.  Your 8 plex could become the subject of a game of telephone and end up being described to half the town as "a Section 8" project.