Multi Family with additional Unit on 1025

[xm2841]

The request is for a 1025... I inspected the multi this morning with 3 units in one building and another small building out back which was basically a small SFR. Can this be done on a 1025, they are all under the same tax id number and owner. Two seperate buildings.... one buiding has 3 units and the other has just one. Is this even considered a multi family dwelling?

Thank you

-JW

 

[Lee Lansford]

What sayeth the local zoning administrator as to the legal use of the property?

 

[AlwaysLearning]

We call this a 3-Flat with a coach house in Chicago. Not uncommon in older neighborhoods in Chicago. If all 4 units are legal than there is no problem using 1025. I have done it. However, you may want to include at least one comp with a coach house or you might get an unwanted phone call asking for additional comps

 

[xm2841]

Not sure of the specific zoning code/designation because the county is closed for the day but it is in a hotel area and the use disc. through county records says "residential struc on comml land"

 

[xm2841]

Coach house, good to know, at least I know its possible.... as far as another comp similar, very slim chance that will be possible.

-JW

 

[PropertyEconomics]

Here we would call that a house and units and there are typically a lot of sales with which to measure value both from a market comparison and an income approach. I have used the multi form when doing these assignments and never had trouble.

 

[Webbed Feet]

Mr. Wiesert,

If it all is legal, yes, you use the 1025 and treat all four as units of a 4 family income property. I would expect legal from an old original house in an area the zoning got changed. Let me guess, the house is older than the three unit improvement? Let me also guess the GBA of the three units are not remotely similar to the house?

Last one of these I did was a real pain in the rumpus. Charge more, quote more turn time. And 100% plan on getting stipped! So charge for the extra time up front in your fee bid!!!!!! You may be forced to turn to rentals of similar SFR houses to that house in order to nail the market rent down. Just a lot of extra work and expense involved. In the current enviroment going on impossible to meet stips are almost a certainty. Nuts, I was hit with impossible to meet stips several years ago on one like this. I finally just had to tell my client to find a new lender, the one the stips were coming from clearly just did not want to do the loan. My client's staff ended up agreeing with me.

Webbed.

 

[Lloyd Bonafide]

We would call that a 4-unit property here. Very common to see an older house and 2 or 3 newer units in the back.

 

[Mike Boyd]

We would call that a 4-unit property here. Very common to see an older house and 2 or 3 newer units in the back.

I agree with Lloyd. I have done 4 units where each unit was a detached house. The problem comes when you have a 4 unit building and the owner has converted an old chicken house, garage or shop into a 5th unit. Then, your out of luck with a 1025. Somewhere I read that multifamily properties cannot have a guest or granny unit.