I've visited a couple of properties this last week that had illegal third apartments in a duplex, either in the attic or basement. What should I make of this as an investor? I like the idea of having another $1000 a month rental income to make the investment numbers work much better, but is it worth the risk of being fined? Is it worth the risk of trying to get a triplex conversion through the town? Probably not, I'm guessing. Is there any other loophole to make it work?
Thanks,
Ethan
Replies
You may have to remove (or bury) any shower or tub (bathing faciities) if the space not considered "habitable" by the town. The rules do vary by town and it's typically a zoning issue, not construction. I suggest you price it based on what's legal.
Ethan:
To tell the truth, I am not 100% sure of the legality. I think it would be town by town. Personally, I would rent it out if the town did not prohibit.
EE
Eric, is it completely legal to rent out an attic or basement of a duplex as an office or artist studio? Does it need to be inspected and changed on your c of o? I like the idea of the signed document.
I agree with Nick. Very risky. I have a multi-family with an extra unit like that. I just left it empty for years. Finally one of the the tenants offered me extra to use it for office space. I made him sign a paper saying that he would not allow any sleeping in the unit (it does not meet fire code for bedroom use).