 sell 2 4-unit bldgs OR... (by Laker Lori [CA]) Jun 3, 2023 1:28 PM
 sell 2 4-unit bldgs OR... (by ned to [AL]) Jun 3, 2023 1:42 PM
sell 2 4-unit bldgs OR... (by Jim in O C [CA]) Jun 3, 2023 1:45 PM
sell 2 4-unit bldgs OR... (by Barb [MO]) Jun 3, 2023 1:55 PM
sell 2 4-unit bldgs OR... (by Johnny B. [MA]) Jun 3, 2023 3:12 PM
sell 2 4-unit bldgs OR... (by plenty [MO]) Jun 3, 2023 3:58 PM
sell 2 4-unit bldgs OR... (by DJ [VA]) Jun 3, 2023 6:17 PM
sell 2 4-unit bldgs OR... (by Oregon Woodsmoke [ID]) Jun 4, 2023 10:37 AM
sell 2 4-unit bldgs OR... (by Salernitana [CA]) Jun 4, 2023 3:25 PM
sell 2 4-unit bldgs OR... (by Ray-N-Pa [PA]) Jun 5, 2023 8:10 AM
sell 2 4-unit bldgs OR... (by Laker Lori [CA]) Posted on: Jun 3, 2023 1:28 PM
Message:
20 yrs ago I bought a 4-Unit TOGETHER w/ another one which Long Beach LISTS as a "4-Unit". It had a 5th, un-permitted unit & I vaguely recall the mrtg company had problems w/ it & the seller had to remove the tenant, cabinets, sink, belongings, etc. The 2 bldgs HAVE to be sold together because they share a driveway, mail, laundry. I am considering selling next yr, maybe suck it up & pay capital gains, too. Should I get that bootleg legally permitted as a 5th OR try to work it so that it can be relatively molded back into the "house unit," making it a 2 BR-2 BA as part of the 4-Unit.? For selling, is the combo of 2 4-Units easier vs. 1 4-Unit & 1 5-Unit? (residential mrtg vs commercial) Thoughts? --54.153.xx.xx |
sell 2 4-unit bldgs OR... (by ned to [AL]) Posted on: Jun 3, 2023 1:42 PM
Message:
No strong opinion here. That being said, it'd be nice to get a very local opinion from a trusted source. I just see this question being different dramatically depending upon location.
That said, here, what I would do, is (try) to budget the rehab both ways and (try) to find comps both ways... Might be a challenge. --107.77.xxx.xxx |
sell 2 4-unit bldgs OR... (by Jim in O C [CA]) Posted on: Jun 3, 2023 1:45 PM
Message:
You are in California, remove it --99.23.xxx.x |
sell 2 4-unit bldgs OR... (by Barb [MO]) Posted on: Jun 3, 2023 1:55 PM
Message:
My experience is that 1-4 units counts for residential insurance rates and 5+ is more expensive commercial rates.
I would leave it as a 4unit. --149.76.xxx.xx |
sell 2 4-unit bldgs OR... (by Johnny B. [MA]) Posted on: Jun 3, 2023 3:12 PM
Message:
I would have done it 20 years ago if I was you. Why bother now. --107.77.xxx.xxx |
sell 2 4-unit bldgs OR... (by plenty [MO]) Posted on: Jun 3, 2023 3:58 PM
Message:
I would hope that any investor would see the space for the fifth unit as opportunity and I'd not do anything but sell the dream. --172.59.xx.xx |
sell 2 4-unit bldgs OR... (by DJ [VA]) Posted on: Jun 3, 2023 6:17 PM
Message:
Let me make sure I understand you right....
Are you saying that you re-created the illegal additional apartment after you bought it, and have had tenants residing in it for the last 20 years?
If that is the case, you have been a combination of foolish and very lucky.
Why would a mortgage company not have a problem with it now, like they did 20 years ago?
Get rid of it for a smooth transaction and thank God you haven't had a problem all this time. --174.47.xxx.x |
sell 2 4-unit bldgs OR... (by Oregon Woodsmoke [ID]) Posted on: Jun 4, 2023 10:37 AM
Message:
It would all depend upon how difficult to get the permits, how reasonable the inspectors are, and what it would cost to do the renovation. Very few renovations actually return their cost at sale so I wouldn't be surprised if it raised the sales price but not by enough to pay for whatever it is you have to do to make it what you want.
It would most likely be a lot cheaper to turn it into a second bedroom than to add a kitchen and bathroom to make another unit.
I like the idea of letting the buyer see the space and decide for himself what to do with it. Me, I might see it and think I could add a laundry room to increase my rents. --76.178.xxx.xxx |
sell 2 4-unit bldgs OR... (by Salernitana [CA]) Posted on: Jun 4, 2023 3:25 PM
Message:
Several home listings in San Jose and the Bay Area have included the word, "unpermitted". San Jose inspectors are the toughest. The houses are sold regardlessly.
As ned in AL noted, you could consult someone who would know the answer like a real estate agent. I personally think that some investor/buyer wouldn't care given your excellent location. You could just list it under contingencies? Best of luck and congratulations on your market becoming so hot recently. --67.170.xxx.xxx |
sell 2 4-unit bldgs OR... (by Ray-N-Pa [PA]) Posted on: Jun 5, 2023 8:10 AM
Message:
From a loan underwriting perspective, multi families that are 2-4 units can get grouped in as residential units. If a fifth unit is added, the loan then becomes commercial.
You will have to do a cost analyst to see if the income from the extra unit off sets the added cost of the loan shifting to commercial status. So i would be reaching out to a mortgage broker to see what your numbers look like.
Perhaps having that 5th unit shifted into a spare storage room (remove the toilet), might be the best temporary fix. --24.101.xxx.xxx |
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