SFR Zoning and a Two-Family Opportunity

SFR Zoning and a Two-Family Opportunity

Investor · Scottsdale, AZ · Member since 2020 · 12 posts · 6 votes

Hello,

I came across an opportunity in Texas to purchase a large residence with an additional large "guest house" - separated privately by two, 2-car garages.  The idea was to purchase, rent out one part and live in the other...however it's zoned for Single Family (R40).  Ideally, we would be looking for a long term rental in the other half, but realize this would be challenging given the zoning.  So we intend on playing by the rules, is there any chance of potentially getting this re-zoned or get an exclusion?  I realize it's probably city specific, but wanted to reach out to get opinions before I go walk the property.  Thanks for everyone's input!

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  • Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    4y

    You need to look at the City/County municipal codes related to zoning, and more specifically the 'allowable use' section. Zoning is what is often referred to, but really people are often talking about the allowable uses within a zone. 

    Think if it this way...zoning and allowable use are similar but distinct layers of regulation. So you'll have your zone which gives the basic perspective of what can be done on a property, for example in this case 'Single Family Residential'. So to the casual observer you are saying 'that means I can only have one house'. But if you looked at the 'allowable uses' for the SFR zone and it says that a guest house may be constructed then your parcel is in conformance with the zoning. It may also say that the guest house may or may not be rented...that likely is all in the 'use' section. Locally the guest house section said it could be rented for no less than a 30 day stay, so the idea was that guest houses used for LTR were ok, but STR were not.

    This use section is where you get for example a lot zoned SFR, but it can be used for an in home day care, a residential care facility etc. Generally the use section will identify that a daycare up to 6 children is an allowable use in the zone, or an allowable use with a 'Conditional Use Permit'. Beyond that it then becomes a commercial use or requires a different approval. So researching the use not just the zoning will really help in identifying what can be done with a property.

  • Investor · Scottsdale, AZ · Member since 2020 · 12 posts · 6 votes
    4y

    Fantastic. I’ll dive deeper tmrw and give them a ring.  Thank you for the great response. 

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