Real Estate Investor · Burlington, MA · Member since 2010 · 12 posts · 7 votes
I have been looking at some 6 unit properties in MA and NH and I am finding that they might be listed as a 6 unit but after doing research I find that it is zoned as a 5 unit. All of the units appear to be up to code so I'm not sure why they aren't officially listed as a 6 unit.
Does anyone have any suggestions on what to do when dealing with these types of issues.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
14y
If the seller's concerned, you certainly should be. Don't let his problem become yours. If someone is offering a property for sale I have ZERO qualms about calling the building department, zoning/planning commission, or any other agency to verify the information they're providing. Call and be specific about the address in question. If you beat around the bush and get an answer that turns out to be wrong, you'll be the one stuck with a problem.
If the seller insists you do not call, assume the property is not in compliance and that you will have to either try to get a variance or convert the property to a five unit building. At a guess, I'd say you have a basement unit that's not properly permitted and that may not be in compliance. Or an attic conversion, perhaps. I've seen numerous units where storage space has been converted into an extra unit. Maybe the city is OK with it, maybe not. But don't turn it into your problem without getting proper value for the risk you're taking.
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
14y
Hi John,
I'm up in VT and came across the same issue once, where I bought a 5 unit that was zoned a 4 unit.
First, I put it in my offer that it was contingent on getting the proper zoning approvals.
In VT, I had to deal with both the state for a wastewater permit, and the town for parking, because my driveway technically only had enough space for 4 units.
Without going into a ton of details, I spent about 3 months getting the proper permits and zoning. Once I did so, I released those contingencies and closed on the deal. It was a great deal with seller financing offered, which I why I put in the effort.
Developer · Carlsbad, CA · Member since 2011 · 18 posts · 3 votes
14y
Your best bet is to head over to the local municipality's building dept (city or county) to see what building plans they have on file for the property. If it has a 6th unit that was constructed w/out permits, you could be in for a huge headache...including a major retrofit to bring it to code or possible demo. It would be wise to speak with the planning dept also to make sure the building is properly zoned for the lot. Be aware also that you may be throwing up a red flag if the city finds the building in non-compliant, which could make for an unhappy seller! Good luck :)
Investor · Omaha, NE · Member since 2011 · 475 posts · 211 votes
14y
I agree with Ryan. Be sure you get a letter from the planning department that the property is in compliance with all zoning ordinances before you buy it. You want to be sure the present owner is on the hook for any permits/changes that need to be done to bring it into compliance before you own it. I made this mistake when I bought an apartment and neither I nor the lender asked and when I refinanced 4 yrs. later the new lender did and we discovered the parking lot was changed 3 owners ago and was never permitted nor was it in compliance with the zoning restrictions and I had to pay for the work to bring it into compliance to be able to get the refi. and to stay out of trouble with the planning department. It was a big hit to the pocketbook!
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
14y
If the seller's concerned, you certainly should be. Don't let his problem become yours. If someone is offering a property for sale I have ZERO qualms about calling the building department, zoning/planning commission, or any other agency to verify the information they're providing. Call and be specific about the address in question. If you beat around the bush and get an answer that turns out to be wrong, you'll be the one stuck with a problem.
If the seller insists you do not call, assume the property is not in compliance and that you will have to either try to get a variance or convert the property to a five unit building. At a guess, I'd say you have a basement unit that's not properly permitted and that may not be in compliance. Or an attic conversion, perhaps. I've seen numerous units where storage space has been converted into an extra unit. Maybe the city is OK with it, maybe not. But don't turn it into your problem without getting proper value for the risk you're taking.