My fiancé and I are interested in house hacking a multi-family property in Arizona.
1. Would it possible to convert a single family large home into a duplex, triplex, or fourplex? How practical is this approach?
2. Are there areas or zones that legally do not allow multi-family properties?
3. Do you have strategies/advice you'd give to a young married couple looking to house hack their first investment property?
Thanks for your responses. We are so excited to use REI to achieve financial freedom!
You will want to look into zoning in your counties to see what they do and don’t allow. In my opinion it is better to find a good deal that is already a multifamily rather than attempting to convert one unless it makes sense and you can add a lot of value by doing so.
@Zack Francis I agree with the previous post. With the cost of materials right now I think you’d be better off with an existing multi than a conversion.
I was looking at a building with an existing apartment and essentially a large room with two bathrooms to convert into a 2 bedroom unit and a 1 bedroom unit and my contractor told me $120,000 for the renovations due to the cost of materials.
He believed I’d be all-in for $240,000 and rents would be $3000 per month with a cash flow of about $800. So close to a triple.
I decided not to do it because I’ve gotten focused on something else for now.
If you're having trouble finding a duplex, you can also look for a SFH with an in-law suite or ADU. A property that already has a separate kitchen and separate entrance would be much easier to tackle than going through the process of a conversion.
I have multiple clients have have done exactly what you are looking to do. I will shoot you a private message!