Real Estate Investor · Auburn, WA · Member since 2014 · 21 posts · 1 vote
Hello BP.
We were buying a single family house in Crown Hill, Seattle from an auction. However, after buying this property and checking it out, we discovered it's a duplex. How can this impact the selling price of a flip?
Funny, my first thought wasn't how it affects the value of the flip, but how it affects costs on the rehab. If the property isn't zoned 2-family and/or the conversion wasn't permitted, you're looking at costs to restore it to a one family or permit it after the fact. I'd get clear on the zoning and permitting 1st.
Depends on the comps. A single family house in a mixed neighborhood could be worth more, or less, than the same size duplex. Is the duplex conversion legal? A look at the property records to see if it's classified as a single family home, and a look any permits converting it, would be a first step.
Funny, my first thought wasn't how it affects the value of the flip, but how it affects costs on the rehab. If the property isn't zoned 2-family and/or the conversion wasn't permitted, you're looking at costs to restore it to a one family or permit it after the fact. I'd get clear on the zoning and permitting 1st.
Was it a Bank or Tax auction? first step is to follow Maire advice and see what is is zoned for . If it was operating as a duplex and you have to turn it back to a SFH, that could significantly increase your rehab $$
You need to get down to the bldg. dept and see what permits were pulled and if what you have is legal. 2 units in a single family area may or may not be legal. Two meters doesn't mean it's two legal units.
How is it being assessed by the tax assessor? How do they describe the property, SFH or duplex?