If I BRRRR a property with an illegal basement suite will I get screwed on the refinance? I don't think I can make it legal because there is a requirement for multiple parking spaces which would be impossible to do. So I wouldn't be able to count the gross rent from the basement … :/
If I BRRRR a property with an illegal basement suite will I get screwed on the refinance? I don't think I can make it legal because there is a requirement for multiple parking spaces which would be impossible to do. So I wouldn't be able to count the gross rent from the basement … :/
Indeed lenders can't count the income from the illegal suites, what they would usually do is use the rent that you would get if renting the whole place as 1 unit. Are you sure you have no parking or garage options to meet the requirement?
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
Well if parking is the only thing making it illegal, then that is better. Were there permits pulled when it was made into a separate unit? Everything up to code? This is important......
But then I would go get a variance, or lease a parking place from a neighbor.....
Funny enough the other side of the duplex is also for sale lol I'd love to buy it. It's 100,000 dollars more ...but owning both would give me alllll the parking. I'll have to ask the city about the original permits, correct?
Funny enough the other side of the duplex is also for sale lol I'd love to buy it. It's 100,000 dollars more ...but owning both would give me alllll the parking. I'll have to ask the city about the original permits, correct?
Yes, a simple call or visit to the Building Department will uncover all permits ever pulled for the property. Just ask for the permit history. It is good to know anyway. If no permit was pulled for the basement dwelling, you will have to ask how to make it legal (or if you can)