SFH conversion into a duplex. Pro and cons? How is it done?

Question

So i found a place that has separate electrical. Also is is zoned for a multi unit. What now? What would be my next step? Any feed back would be greatly appreciated!

Eric M. · Answer

When you are comfortable disclosing, I would be interested in seeing the details and numbers of this deal. I don't think I have ever seen a deal that actually adds value by splitting a SFH into a multi. In my area, it is always the other way around. You add ARV by converting to SFH.  Adding units, yes, splitting units yes, building new multis, yes, renovating multis, yes. But deconverting to SFH vs rehab as SFH I haven't personally seen as max use of the property. Maybe just because I have never looked!

I can envision a time (years ago) and possibly a scenario where it might make sense, just haven't actually seen it and would be interested.

Sue Hough · Answer

@Emanuel Escarpita welcome!  Just a couple of comments about working in Chicago; unfortunately you will never have the opportunity to “talk” to the building inspectors, as they are a group of elite individuals who do not have listed phone numbers and you will only see after you request for inspections via an online portal.  The City of Chicago Building Department is not friendly to newbies or any sort of people.  It comes down to knowing the codes.  My recommendation is to work with an architect who is familiar with Chicago and has many years experience.

Just because you are zoned “multi-family” does not mean you are eligible to convert the building.  Also, what classification of multi-family is it?  Many factors go into determining the feasibility of conversion, such as; FAR (floor area ratio), off street parking, compliance with fire standards and so forth.

Finally, I would be very cautious about your new find.  The Chicago market is saturated with investors, to the point there is almost no inventory. The small worthy investments which go on the market are under contract almost immediately.  Therefore, every property which is on the market longer than a week is very suspect, as I am positive many investors have already toured the building and have found it unsuitable.

Good luck!

Prashanth Mahakali · Answer

@Emanuel Escarpita

Next step would be to have your due-diligence team evaluate it. Attorney, Architect, GC, Property Manager and a realtor. What you learn from each of them will help make an informed decision. Good luck!

Michael Lewis Lee · Answer

Hello Theresa!  Once you can confirm the zoning, I would suggest to discuss this with head building inspector for the subject property and find out what to look out for.  The existing resident area might have some building code issues.  Just realize that some state and city laws are different.  A local well known and experienced general could help you

That being said, I had about 30 years of experience in Dallas County as well as some of it's suburb cities and they all have different outlooks.  Most of my experience was in residential remodeling.  Chicago may not be that different than Dallas.  What may be in firewall construction between the two units.  The attic will probably have to be fireproofed between those two unitsp

natehat would have to be constructed with more framing and/or plywood or drywall to eliminate a possible draft between the two units from attic floor to ceiling.  In the living space between the two units, you might be required to build a firewall which is like a double famed wall about 1" apart and two layers of drywall on both sides.  Things may have changed over the last 10 years.

That's one good reason to talk with an experienced building permit person and see what they expect or require in your construction.  An experienced and well known general contractor can help you.  Their experience with firewall construction can usually be done right the first time.

Theresa Harris · Answer

@Emanuel Escarpita  Figure out costs to split it into two units, talk to the city to make sure the info is right and if any rules have changed...and put in an offer subject to you checking with the city to confirm zoning.

Tom Shallcross · Answer

@Eric M, agreed, we did come close on one that would've worked sfh to split to 2 unit in portage park. There are so many househackers looking for products there that ARV was close, and for rehab, mechanics and layout already set up as an illegal 2 unit. We are rehabbing it to flip as a SFH but it was a coin flip to go that way or flip to an FHA househacker (or hold and rent it ourselves).

Calvin Ozanick · Answer

One thing which is often neglected is the plumbing. Does the unit have the setup to have to full bathrooms and kitchens? Many properties lack the ability to be converted from a 1 unit to more because of the configuration of the units. Be sure to be careful when selecting and maybe even bring along your contractor if possible.

Tom Shallcross · Answer

Specific to converting a SFH to a 2 unit, I had asked my attorney and GC about this and below is a combo of their answers:

Application

1.               Three page Zoning Amendment Application

2.               Certified Plat of Survey no older than 6 months

3.               Must be filed by the owner of the property to be rezoned or must have written authorization from the owner of the property.

4.               Economic Disclosure Statements (see 17-13-0304-(A-G)

5.               Ordinance Page

6.               Written notice for of affidavit to chairman (form found in the application)

7.               Written notice to surrounding property owners (form found in the application)

8.               Mailing list, in label format, of the names, addresses, and PINS of property owners to be notified.

Following the submission of the applications, the Zoning Administrator will review the application and forward a recommendation onto the City Council. A hearing will then be held, and the City Council will issue a final decision on the proposed amendment.

There are a few ways to possible bypass the application process, for example:

-RS-3 zoning permits single family homes AND 2-flats, as long as lot size requirements are met. The lot-size requirement to build a 2 flat in this zone are:

1) 2,500 sq/ft per unit (5,000 total), which isn’t met, OR

2) 1,500 sq/ft per unit (3,000 total), which is met, as long as at least 60% of the buildings on the same side of the block have 2 or more units.

Sarita Scherpereel · Answer

@Emanuel Escarpita after confirming zoning, you need to work with an architect to see what the FAR restrictions for the lot will be. That will help you determine how much you can actually build and if your ARV is worth it. Best of luck.

Kenneth Garrett · Answer

@Emanuel Escarpita

There are a number of requirements.  The most significant is a 1 hour rated wall or floor depending if there side by side or stacked.

SFH conversion into a duplex. Pro and cons? How is it done?

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