Adu On A Duplex

[timindp]

Doing an appraisal for a purchase in FL. It is a legal 2 unit property and has a detached ADU (400sf with kitchen and bath) to the rear of the site. There are 2 electrical meters, not 3. Though rent is being collected on 3 units. 3 addresses/unit #'s. Though title is showing a 2 unit it is being marketed as a 3 unit. Question: would I use 2 unit comps only and add the ADU as a line item on the grid or adjust the bed/bath count for this 3rd unit on the grid? Cannot find any other 2 units with a ADU "granny unit" for comps. Would I add 1 triplex for reference ?

 

[J Grant]

sounds like a 3 unit to me ( triplex) The third unit what you call an ADU is a studio unit. Whether it is legally zoned for triplex or the third unit was buit without a permit etc might be issues you need to address . The third unit lacks its own meter so how is the electric bill calculated for that tenant? Imo others might see this differently. Normally ADU is with a SFR which is not the case here.

 

[timindp]

Yea I pulled 3 unit comps when I did the inspection. I could not find any permits for the 3rd unit under Broward County's website. It has its own power meter. The other 2 units are attached as 1 building with a wall in the middle that divides the 2 units. Those units are sharing the power and also the propane tank. Highest and best use is to continue as a 3 unit since it's income producing. Probably answered my own question.

 

[J Grant]

Idk- get more opinions.

HBU has to be a legal use. This is not an ADU, it is a third unit they built without a permit. is the lot zoned for duplex only or can one build more units on the site, which would make it a legal unit per zoning even though they did not get a building permit. But if zoning is duplex/two family max, then HBU can not be 3 untis because it is not a legal use.

They may be collecting income on the third unit , but it if it is not legal, then it is value in use but not HBU. It sitll might contribute to value but if not legally zoned not sure if you should count the income from it...see what others here advise

 

[Mike Kennedy]

Where in Florida? Governing Municipality?

 

[timindp]

Zoning is RS8 Residential Single family. Though there are several other 2 units and 3 units in the same area with same zoning.
It's is Fort Lauderdale just south of Marina Mile Blvd and just north of FLL.

 

[J Grant]

Zoning is RS8 Residential Single family. Though there are several other 2 units and 3 units in the same area with same zoning.
It's is Fort Lauderdale just south of Marina Mile Blvd and just north of FLL.

eeks...even though there are several other 2 and 3 units in the area with same zoning , if zoning is RS single family the subject might be illegal even as a duplex, it might indeed be residential dwelling with an ADU...with the larger dwelling having a wall down middle and two kitchens to collect two rents..I;d run this whole thing by the client before proceeding further.

You wrote in a post "The other 2 units are attached as 1 building with a wall in the middle that divides the 2 units. Those units are sharing the power and also the propane tank. "with a legal duplex the units do not share power typically...it sounds like they cut a SFR in two and it has an ADU..but see what others think this is a mess, I will try to look up a similar assignment I did several months back.

 

[J Grant]

I just looked up the one I did in Palm Beach county very similar situation, because the zoning was SFR even though configuration was a duplex ( with a flex use studio ) and client ordered it as a duplex, UW rejected and it had to be be redpme as a SFR with an adu. Even though land use code allowed multi family, the lot itself was zoned SFR. There were also a few duplexes scattered around but we can't go by that...we are appraising our subject and HBU has to be legal per zoning .

Sounds to me to be legal for zoning your subject is a SFR with an ADU, with main dwelling divided into 2 units. It might need a cost to cure to retrofit back to one dwelling or made subject to remove stove in second kitchen etc...go over it with your client they may put order on hold

 

[timindp]

gotcha, thanks for the input

 

[glenn walker]

Doing an appraisal for a purchase in FL. It is a legal 2 unit property and has a detached ADU (400sf with kitchen and bath) to the rear of the site. There are 2 electrical meters, not 3. Though rent is being collected on 3 units. 3 addresses/unit #'s. Though title is showing a 2 unit it is being marketed as a 3 unit. Question: would I use 2 unit comps only and add the ADU as a line item on the grid or adjust the bed/bath count for this 3rd unit on the grid? Cannot find any other 2 units with a ADU "granny unit" for comps. Would I add 1 triplex for reference ?

You show you are in California ?? So what and why are you dealing with this in Florida ?