1 or 2 Unit ?

[Blue1]

Is this a one unit with in-law or 2 unit?

House with another smaller house behind it. Zoning is R-1 but the City has changed zoning regs (just this month) to allow re-build of legal-nonconforming properties.

Both units occupied 1 owner and the other his girlfriend which he charges no (monetary) rent... :roll: So....no income. Oh yeah....two separate electric meters.

The back unit faces an alley and the City has no address for it.

I am thinking of doing a standard 1004 form with Income Approach. What do you all say?

 

[Mountain Man]

Yeah, we have plenty of those. House with a "Guest cottage". I actually have some comps, so I just adjust for market $$. The cost is usually higher than contributory value. Most HO's have a hard time understanding that.

 

[wyecoyote]

We have some of these in this area called ADU's. The zoning regs allow for them here as long as they are half the size of the main dwelling or were built prior to current zoning standards.

Ryan

 

[Verne Hebert]

Run with the 1004.

Duplex by definition must have a common wall, either vertically or horizontally, and must be individually metered.

Hey I don't define this stuff!

Here the contributory value of these "in-law" units ranges from 16 to 24 $/ft with a cutoff at 800sf.

Another look, at 500sf with rents at $ 500 month, this line adjustment is equal to 2 years rent!

Hope this helps.

Happy Holidays!