Bought 2 flat, but everything I am finding is showing a legal 3?

Question

I recently bought a multi unit building in North Park.  It was sold as a 2 flat with a finished garden unit.  I am trying to figure out if it is truly a 2 flat or actually a 3 flat.  After reading some posts on here I tried digging a little and found the following.

My water bill - # of dwelling units used to calculate your garbage fee: 3                                                                Building Permit and inspection records under building attributes lists DU3                                                    Cook County Assessors Website shows the property as 3 apartments.                                                          There are four(4) meters, one for each unit and one for the building.

Following up question, if it does turn out to be a legal 3 flat is it worth getting a new appraisal?  Thanks!

Tim Matthews · Answer

Is that Certificate of Zoning Ordinance for checking what type of zoning the property is currently zoned as or is it for requesting the zoning to be changed? If it's the latter, then I have received mixed information from both the Zoning Dept and the Building Dept, including getting a lawyer involved, contacting the alderman, etc. Just would like to know how to do this from people who may have gone through the process before.

Jp Smith · Answer

@Jonathan Klemm Thanks for the insight.  I am going to pull/FOIA as many historical documents as possible for hopefully even more ammo towards a 3-flat.

Brie Schmidt · Answer

What does the zoning cert say?  That is all that matters. If you find old permits as a 3 you can get the cert corrected as long as no permits were pulled to deconvert it to a 2

Jonathan Klemm · Answer

@Tim Matthews - That PDF I shared above is the document you submit to get a "zoning certificate" from the city.  Typically, when you purchase a new property in Chicago this is what is pulled.  A zoning change is a much larger ordeal.

@Jp Smith - Definitely get as much info as you can.  There should be a way to check the historical watermark drawings as well, so many different information sources lol Chicago is wild.

John Warren · Answer

@Jp Smith if you actually do have a 3rd legal unit, it is likely that you do have a higher value. There are obviously a lot of factors to consider, but any good realtor can do a market analysis to let you know. The reason I say this is tricky is because it is pretty dependent on the area. There are a lot of areas here in Chicago where two units trade for relatively similar prices as three units. This may sound counter intuitive, but they are normally sold to families who are looking to use the basement or attic space as extra living space so there isn't a focus on revenue from the space.

Jp Smith · Answer

@John Warren, as for the new appraisal... I am going to look to refi out of my VA into a conventional hopefully this year or early next and then use my VA to purchase again.  I am not sure how much a third unit will add to the value, not sure if there is a "standard/average" dollar amount per unit.  Obviously different neighborhoods will have different values.

John Warren · Answer

@Jp Smith you have had some solid advice here already. My only question would be, why are you pulling a new appraisal if it turns out to be a 3 flat? Yes, it will be worth more but are you trying to cash out right away? I would tuck this away and revisit it next year or something. Maybe focus on getting an updated zoning cert that says 3 units and then if/when you need to sell or refinance you will be ready.

Jonathan Klemm · Answer

Hey @Jp Smith - You are not alone with your Chicago zoning and permitting confusion.  Everything you have is pointing towards a 3 flat so pull another zoning cert. and if it comes back as a 2 flat use the info you have to justify it being a 3 flat as @Brie Schmidt mentioned.

Here is a link to the application: https://www.chicago.gov/conten...

Jp Smith · Answer

Thank you both

Ben Lin · Answer

I would not get a new appraisal, unless I have done quite extensive renovations. I am not familiar with your area but if you're not in a desirable area, your appraisal will come back similar or may even be lower if you use a different appraiser.

Bought 2 flat, but everything I am finding is showing a legal 3?

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