Re-Zoning Philadelphia Mix Use Triplex

3 Replies

Hey there BP

In looking for an investment property I came across a Multi-family that has two residential units and a 1st floor commercial. I plan to finance through an FHA. I am wondering if this property can even be considered, and how I could go about attempting to have the 1st floor rezoned as residential. Any and all advice would be greatly appreciated!


Hey James - 

I can't comment too much on the financing side of this as I'm not a lender, but I believe you will need to have the property rezoned PRIOR to settlement if you are going FHA. This can be achieved with a contingency in your offer and the assistance of the seller. Ideally you would make your offer contingent upon the seller receiving a zoning variance. The process will likely involve an initial review with the local community organization followed by a meeting with the community in general, and lastly approval from the ZBA. The applicable organization, the dynamic of the surrounding neighborhood, and other factors will determine how difficult the process is. Generally, down grading the zoning is a smooth process. Up zoning can be a different story.

Perhaps @jerry padilla could help with the financing side of your scenario.

The only way it will work is if you can prove that you are also the owner/manager of the business that will be operating in the commercial unit (and also living in one of the apartments).

There are a lot of properties like that in philly!

It's been a while but, IIRC, you can finance via FHA and have some percentage of the property as commercial. I want to say it is 25% of square footage of building.

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