How hard is it to make a SFH a MFH?

Question

Hi All,

Long time investor in GR, and i have a few MFH that are all amazing, but im wondering would it be cheaper to potentially just buy some SFH that are all the same size as a Duplex, but $100k cheaper. Would there be a lot of permitting required for all of this to happen?

Mitchell Luban · Answer

@Monte Dreyer I have several SFH and MFH's in GR. I am also a broker working primarily with investors. The city makes it pretty hard to convert a single family into a MF. You have to have a larger lot and be able to provide off street parking and then usually get neighborhood approval even if you meet there list of approved requirements. I have seen it happen in scenarios in which a duplex was converted into a SFH for whatever reason then getting it converted back to a MFH.

I honestly have had more luck with SFH in certain areas of the city with extremely high rents. I then only have to deal with one lease, one set of mechanicals, and no tenant issues etc...  So not saying it isn't possible. I just haven't seen it be a worthwhile pursuit in most scenarios.

Eliott Elias · Answer

Call the city and talk to other investors about the conversion process.

David Friedman · Answer

Each city will have different requirements. Also depends on the zoning if you are allowed to do it in the first place. It could be a lucrative venture. We have purchased single family homes with garages that already had plumbing and electrical ran to the garage which made the conversion much cheaper. Look for deals like that and it can work to your advantage.

How hard is it to make a SFH a MFH?

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