Buying a SFH that has been converted to Triplex with no Permits?
Found a triplex that cashflows on paper, has large rooms, high ceilings, and in B- area. Only issue is that it is a SFH that owner converted to 3 separate units without pulling permits.
It's a 3/1, and (2) 1/1s. Gross cash income is $2,850 and asking $240,000. I feel like I could get it cheaper as it doesn't have any permits pulled but wondering if it is smart. Obviously I don't want my tenants to get shocked from a bad wiring job but I figure my inspector would go through all of these items to make sure it is up to code.
Wondering what my options are in regards to this property. Is it worth pursuing? Do I need to get the Seller to pull permits before closing? What kind of penalty would I face if I got caught using a SFH as a Multi family dwelling?
Any thoughts would be appreciated! Thanks!