Convert a duplex into 4plex in R5 zone
Hi,
I own a Duplex in North portland, and each side has a finished upstairs with 1026 sq feet, a 726 sq foot unfinished basement, and a 300 sq foot garage. I'm considering finishing the basements on both sides, and turning them into 1br units, so building out a bathroom / bedroom / kitchen downstairs on each side.
Does anyone know if it's legal to convert a duplex into a 4-plex in an R5 zone? House Bill 2001 makes me think it might be possible, but I don't know for sure. I reached out to Portland BDS but haven't heard anything back yet (been about a week) so i was hoping someone on these forums might know.
As for the numbers, I've spoken with a local property manager and they think it'd add between $31k - $38k in annual rent, and I've spoken to a contractor they estimate it'd cost around $180k, so that'd be between 17% - 21% ROI, so it's kind of a no brainer if it's legal and I can secure funding.
As for financing the construction, I have excellent credit, and some equity built up, so I'm considering using a HELOC with a 95% LTV, Does that sound like a good idea? Anything I should be aware of? Or should I consider something else? It's my first investment property so I'm kind of figuring this all out for the first time.