4plex Incorrectly Zoned as a Duplex...Help

[AJ Vanderhorst]

Hi all, 

I'm pretty new to real estate investing, and nearing the end of a cash-out refi process on a 4plex I've owned for a decade. My plan was to use the $$ to fund my next investment property. 

However, my lender (Quicken) has informed me that the property is zoned incorrectly and I need to get it zoned correctly before we can move forward. 

I reached out to KCMO planning and development and got this response: 

>>City record has no indication of this being anything other than a duplex. The R-1.5 zoning , would allow the use of a triplex with sufficient lot area with commercial plan review and permit for new Certificate of Occupancy. A 4-plex would be prohibited without rezoning of the property.<<

I bought the building in 2009 as a 4-plex and got it financed as a 4-plex. It has been a 4-plex for at least 50 years, under previous owners. Prior to that it was a 6-plex—the three story colonnade type that are all over downtown/midtown. So in 100 years, it's never been anything less than a 4-plex. In addition, there are multiple 4-plexes and larger apartment buildings on my block. 

I'm pretty confused at this point... How is this property zoned as a duplex? Any advice on how to move forward? It seems like this will hold up the refi indefinitely.  

[Dan Weber]

Go to the local Building and Planning Departments, ask for the file for your particular address, and go through every single document in there. Start with the original building permit from when the house was constructed. See what it was built as and work forward and look for any paperwork that indicates any change of use. Create a paper-trail to get to the bottom of it.