SFH zoning but set up as Triplex?

Question

I have a deal 400k, previously was approved for 3 family but city converted the zoning to SFH on whole block.

I'm thinking to submit an offer this weekend. I'm so nervous

The number is very lucrative. 3300sq ft+ in a B+ neighborhood

1 3bd & 2 2bd estimate 3700+ rent

monthly mortgage $2814, owner occupied, minus 10% (repair & maintenance & vacancy) I would still cash flow over $500 & 1k+ when I move out

My main concern is the legality of renting out... renting by room? will the home insurance cover if something goes wrong since this is not a legal multifamily?

there seems to be many advertised as multifamily but do not have the zoning & permit in Philly.

Darius Ogloza · Answer

From your description, the property may be legal non-conforming.  Make sure you check with city planning to determine whether you can legally rent out the units and/or what restrictions a later change in zoning might impose on your use of the property.

Jon A. · Answer

I own a legal non conforming duplex. I had it written into the contract that the city would approve it as being that. I just had to show that it had been perfroming that way for years before my purchase which was obvious because of the two separate meters on the house and the two separate water heaters also. Years later, I had a tenant do some research on the house down at the library and it had originally been built as a boarding house back in 1904.

Eliott Elias · Answer

I would ask your insurance agent. 1-4 units are considered single family

Joshua Janus · Answer

This might be able to produce great cash flow up front but at some point when it comes down to your exit strategy, you might need to be prepared to go through the rezoning process which is the ultimate headache. If the city isn't zoning it as a 3 unit and you are offering and using it that way, that isn't legal.

Mike D'Arrigo · Answer

@Wz Michael generally a property that was legal at the time is grand fathered if the areas is rezoned but you need to confirm that is the case here. You'll want to give though to whether there is a loss of economic value due to it being non a non conforming land use. That's more often the case with a SFR in an area that is rezoned to commercial or MF but it's worth some consideration.

Wz Michael · Answer

I'm calling the city to confirm on Monday. Is non-conforming multi family still worth the money?

SFH zoning but set up as Triplex?

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