I'm considering purchasing a home that has a full unit upstairs and a full unit downstairs in a walkout basement. They both have their own entrance, kitchen, and laundry. The numbers look good for, me for the purchase as a multifamily. However the property is zoned for Single-Family. I could foresee this potentially causing problems with pulling permits for repairs and tax issues. Has anyone else been in this situation? Advice would be helpful.
@Peter Welch check to see if the property is zoned to be "legal non conforming". I do a lot of business in Berwyn, IL, and almost all of the 3 and 4 units are zoned R1. They are normally "grandfathered in", but not always. This is very much a case by case basis. If the property is not zoned correctly, you could also run into issues getting financing on it.