Is this listing lying that the property is a legal 3 flat?

Question

https://www.redfin.com/IL/Chic...

Curious about this property. Says legal 3 flat in the listing. Zoning says its RS3 - isn't that only a SFH? So is the listing blatantly lying or what?

Also, is this a good deal? Price seems cheap for a 3 unit and it seems like it cash flows..not ideal location imo but not horrible..

Jason Albasha · Answer

This is what's known as a "pig with lipstick" or "pig with makeup".

Vincent Incopero · Answer

@Anthony MaiI will bet my personal reputation, coupled with the wristwatch of your choosing, that this is a legit 3 unit. No violations or red flags disclosed from my research.

I would agree with the conclusion of @Henry Lazerow, although for different reasons, and suggest that you bid with confidence knowing that that this is not going to be an issue with the 3rd unit or a headache from a violations standpoint.

Henry Lazerow · Answer

I agree with @jason this property looks like a pig with lipstick lol. It's cheap though for a legal 3 so depends on your goals if it's a good deal or not.

Jeffery M Raju · Answer

To be 10000% sure - you can order a zoning certification from the city for about $120 which will tell you if it's legally grandfathered as 3 dwelling units. RS3 is two-flat only but that only refers to the number of stories of the building and not unit configuration.

https://www.chicago.gov/city/en/depts/dcd/supp_info/certificate_of_zoningcompliance.html

Mike B. · Answer

They were already under contract once and probably already ordered the zoning cert. Ask them to see it or make your offer contingent on zoning if they don't have it yet.

Brie Schmidt · Answer

The zoning map that shows RS-3 has nothing to do with what it currently is. Basically in the 70's Chicago rezoned most side streets to RS but existing properties are grandfathered in. So the zoning map will show you what the new zoning will be when the property is rebuilt

Henry Lazerow · Answer

Just broke contract. You should buy it lol

Clint Votruba · Answer

May I suggest that you research this particular property on the City of Chicago website entitled "Building Permit and Inspection Records" at this link:

https://webapps1.chicago.gov/buildingrecords/

Good luck.

Calvin Ozanick · Answer

Call the zoning office in the listing city. They can establish if it was grandfathered past that zoning law. But you could also be setting yourself up to convert it back in the future.

Elliot Rudmann · Answer

An RS3 zoned structure can still have 3 units if it were grandfathered in before 1957 zoning ordinance. It's likely that the agent who owns this property can prove with a zoning certificate that it has 3 legal dwelling units, though it would ultimately be up to the buyer's due diligence to prove such.

While it may cashflow now, my concerns would be higher maintenance costs and tenant quality/stability issues that stem from the overall functional obsolescence that's present in a lot of Chicago's 100+ year old housing stock. This is hardly what I would consider a "turnkey investment".

Is this listing lying that the property is a legal 3 flat?

Is this listing lying that the property is a legal 3 flat?

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