Hi there,

We purchased a roughly 2.5k SF house in the Sacramento area in an RD-10 zone.

The house is built in such a way that it would be very logical to split in to two units and rent them as two parts of a duplex.

The property meets all the criteria of a multi family dwelling in terms of square footage and setbacks and checks with everything we could find in the zoning book. It's a corner lot and a duplex is permitted by right according to the zoning book.  

All we want to do is to split the house but not the parcel. We understand that there are building codes that we have to follow and permits that we have to get from the building department.

Does anyone know if we need something from the planning department? We prefer to avoid more red tape and delays if we don't have to.

Thankful for your time,

David

I don't know the rules in your Nor Cal area so i suggest you speak to your building and safety department (or any reputable architect in your area) to help inform you of your options and costs. From there, a contractor to bid the plan set and a real estate agent (highly experienced with RE investing experience) to analyze the difference in value from the existing use to the new use.

Thank you!

@David Kesem , I am taking you on a tangent here, but are you sure that is money well spent?  In my market, duplexes sell at a marked discount to single family homes (for comparable size and finish quality, can be 30-40% depending on submarket).  I understand the rental revenue will be higher, but if Sacramento is anything like Cincinnati, OH, you would be better off selling the single family, then buying a duplex.  

Originally posted by @Evan Polaski :

@David Kesem, I am taking you on a tangent here, but are you sure that is money well spent?  In my market, duplexes sell at a marked discount to single family homes (for comparable size and finish quality, can be 30-40% depending on submarket).  I understand the rental revenue will be higher, but if Sacramento is anything like Cincinnati, OH, you would be better off selling the single family, then buying a duplex.  

I'm not an expert. The house is in an area of duplexes so there is no demand in this area for large plots with that kind of square footage (for a premium). We're also looking for the long term income. In that specific area, if we had to sell it, a duplex would have more value.

@David Kesem , good to hear.  I just wanted to make sure the whole assessment was made, as I have seen similar questions to this posed and often times those asking are thinking about maximizing rental income and having more units versus all factors of the investment.