St. Petersburg, FL · Member since 2015 · 317 posts · 71 votes
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?
Also if you are not buying it cash, most likely you will not to be able to get mortgage. Underwriter will want to see the use of the property the same as physical use. Meaning that you can not have 3 kitchens in a SFH.
Thanks @Yuriy Skripnichenko. Most of those response are based on the idea that the property was a legal non conforming duplex so similar but not quite my situation. Still gives me some idea of what it would take to convert it to a multi family. 3-5 months of a vacant property sounds troubling.