FHA Single Family? Three Kitchens

[TITAN1]

George thanks for your input. according to FHA i can do this as a triplex but after going by there today, i found a hornets nest!!! your advice to walk away has been well taken, I RAN away and didnt walk. I turned down the assignment and life goes on. Thanks again George, Greg Bell,Greg Boyd, Rsw and Mary for your insight and opinions.

 

[John LaBelle]

Thanks Mary And Rsw.
Rsw I Have Turned Down Assignments In The Past, Thats Not A Problem With Me.
Just Got Off The Phone With FHA And According To Them If The Units Are Rented Its A Triplex, If Not It Is A Single Family With 2 Accesory Dwelling Units.

The existance of a kitchen does not necessarily mean there is an accessory unit (at least here in Massachusetts). There was a homeowner here, a wealthy man who owns several car dealerships, who owned a large property with 6-7 kitchens throughout the dwelling. The town assessor assessed it as a MF. The owner challenged this. The case eventually went to court and the owner won.

 

[Don Clark]

Many beach front homes in my market have at least 2 kitchens. I appraised one a couple of years ago with a breakfast/convienence kitchen on the 1st floor and a formal kitchen and dining room on the 3rd floor. This seems to be common in some high value properties. This was 2-3 years ago and value was 2.5 million then. This property is the owners Beach House. He has a main residence near Washington, DC.

 

[ZZGAMAZZ]

OK let's discuss an issue that in my opinion, and based upon limited experience, presents an issue that hasn't been addressed on the Forum:

The HUD SOW requires an appraiser to include rental income as a determinant of the existing configuration (physical characteristics) regardless of whether the additional ADU's were constructed with public approval, e.g., permits, with a HC based upon HUD convention that permits exists (condition, workmanship, quality, etc., notwithstanding).

IMO this presents a conundrum: Does the HUD-dictated HC concerning permits of unknown origin trump the legally permissible aspect of HBU analysis?

 

[Michael Tipton]

You should check with the local zoning and the building departments.

1. Is multi-family permitted in the subject's single family zoning classification? 2. Were the conversions from single family to multi-family use permitted improvements?

Finding comps may prove to be a challenge.