Using a 203k to convert a basement

[Dan Worontzoff]

Has anyone used the 203k loan to turn a duplex into a triplex by converting the basement into a legal apartment? I’m specifically looking in the Queens/Long Island area of New York. Assume the basement is more than half above grade. I see some properties listed that have a “finished” basement with a separate entrance but think they might need significant work to make them legally habitable. Thanks. Any advice is appreciated.

[Dan Weber]

@Dan Worontzoff In addition to checking with zoning to determine if a 3 unit building is an approved use for the particular zoning district you are located in, also check with the Building Department/Code Enforcement regarding the building requirements of a 2 unit vs a 3 unit. You are going to a different Building Code standard that usually triggers fire protection, usually a residential sprinkler system in at least the unit you are creating. Be sure to ask about it because that is an unexpected expense that you do not want to be surprised with. Good luck!