All Forum Posts by: Andrew Whicker

Sorry, I meant R-2EC. Lots of numbers in my head : )

The house is a side by side duplex with a bonus area upstairs that was converted to two beds and a bath. It seems to work fairly well, actually.

Thanks everybody for the replies.

Here's a better description of the problem:

It is a R-1-2EC (2 family). The map shows that the zoning areas were obviously done in large patches. Not too many 3 families are allowed to exist by themselves in their own island. I.e. I don't want to be the one to put the chips on the table and apply.

8 years of operating would put the 3rd unit creation around 2006 / 2005 time range. The R-1-2EC (according to the municipal code) was created in 2011. It is a possibility that this house is grandfathered, but we don't know what existed before 2011 as the building code. I need to find that out.

Also, if the house is 'grandfathered', shouldn't there be an official piece of paper that tells me so? I don't like verbal only, especially when dealing with the gov't.

Cheers,

Andy

@William Hochstedler

@David Krulac

@Mike Gallagher

Thanks for the replies.

I re-read the seller's RE agent's comments and he mentions 'non-conforming'. Either that's good, because it means the house is legit or he is just using PC jargon for 'illegal.'

I'll keep on the issue and get back to everyone. I really just want to solve it without harming the owner. Maybe if I tell him, 'Okay, I'm going to have to prove that I can have 3 units in here. So, if I go to the city and ask them... what will I find?' But then that sounds like a threat. Maybe best to just walk away.

The numbers aren't stellar anyway.

Yeah, I really want to walk away.. and I will if the zoning issue can't be resolved OR I am damn near guaranteed that the zoning issue isn't a problem.

I don't need an investment to be a flop.

Real Acquisitions is an online tool based in Texas that is mainly for tax foreclosures, but has all the MLS data. Worth checking out, I'm not sure if it includes Austin or not.

Hi,

I'm sure many of you have faced this issue before. I got an offer accepted on a Triplex that is zoned as a Duplex. The owner says the house has been rented this way for 8 years without a problem. I'm wary. I also don't need to open a box of worms by asking the city if the house is okay by using the exact address. I don't need to throw the seller under the bus.

So how do I go about this? I understand, that in these parts, it's somewhat common to have mother-in-law houses and so forth that do NOT meet zoning requirements and operate that way for years. It seems pure luck, which I'm not interested in. This is my first property and I will be owner / occupier.

Is there anyway to ask the city without... asking the city?

Cheers,

Andy

@Robert Adams

I didn't include appreciate / depreciation because I didn't want to speculate on the market in my area.

I did not included taxes on my income. I honestly didn't think of that.

@Aaron Montague

So, I've done quite a few property analyses since this original post and I'm usually topping out at around 80% of the list price for my offer.

What is your experience?

@Aaron Montague

Should the RE agent know what the comparable Cap Rates in the area?

Also, you mentioned that insurance wasn't added into the costs you calculated. I assumed that this was included in the 50% rule?

Thanks,