Townhome without HOA but buying all 4 units (rezoning possible?)
Sorry if this may be a duplicate. I think I posted it in a local category before.
Hey guys, I came across a off market bundle of 4 townhomes. These are older 80's builds but in a Class B working class area that is booming. Lots of shops in the area and they are building a new multifamily down the street. Also lots of other older townhomes in the area.
It was initially marketed as a 4 plex and when I dug deeper realized that these were four individual townhomes. They are selling all four units but they are zoned single family homes and taxed individually. They all have separate electric but they share water.
I've read the previous posts that warn about purchasing townhomes without HOA because you can't always agree with the other owners about fixing the roof and such, but since I will be purchasing all 4 units does that negate these negatives?
I've also heard townhomes just don't appreciate much. This deal does have some cash flow, but not a huge amount, but its in a highly desirable area close to everything. Another set of 4 units is under contract down the block for about 10% higher that what this one is selling for.
This something I should think about purchasing with a bundled portfolio loan? I already have 8 fanny / freddy individual mortgages and would not qualify for 4 more. Kinda sucks. So I would only be able to do a higher interest rate portfolio loan on this. Numbers still are OK, but not out of the park great.
Also, has anyone ever heard of going to the city and rezoning this into a actual 4 plex. With one address and the units individually labeled A,B,C,D...? So it would be taxed as a residential 4 plex instead of 4 individual single family homes? Advantage of this is it would fall under one loan and be able to get ONE federally backed fixed rate mortgage (since its only 4 units)
Any input is greatly appreciated!!!!