i just looked at a three unit where i live. asking price 349k - dropped from 419k
been on the market for months.
the issues:
it is not ZONED a three unit. Nor is it ZONED with an accessory, a multifamily.
i took a look at it though, and with the exception of a few minor repairs - it is fully rented for a total of 2700 according to broker.
the repairs i speak of would be making it a legal two-family. the basement could possibly make it a three unit, but i think the ceiling is too low. the basement is actually not rented right now. just the first floor and the second floor. both tenants have been there for over two years and plan to stay - according to broker. with some time, the rents could also be increased. the one tenant, i believe takes care of the management of property as well for a discount on rent. the units were clean and i met one of the tenants - a retired nypd cop.
i would have to hire an expeditor to look over the property to tell me what would need to be done to ZONE it at least a multi-family. i could do that myself, but it would take longer.
my thoughts were to meet the seller - who owns 5 other properties and according to the broker is looking to liquidate one property for other investments.
broker also said that a loan on the property as is would not be a problem because the seller has a mortgage through an aggressive lender who has already said they’d give a loan for 350k - 85% LTV.
more info to come. if i saw this thing two months ago, i would have ran due to being afraid, but when i saw this property, something just said to me, “this could be a good deal”.
i’m not thrilled with dealing with basically an illegal duplex currently, but the expeditor might help - and i just might have the seller pay for that report.
on a side note - i also found an EXCELLENT price on a commercial property - priced in the mid 600’s…but i would need some help on here to attract some investors…
please advise…