Its listed a single family home but it a duplex with a in laws quarters too (3 units)?

Question

I have purchased a house in Phoenix, AZ. When I had purchased it they were two families living in that. This house is a duplex I bought it like that. Each has 2 bedrooms and 1 bath the garage was converted to a room. I bought in 2005 "as it is". I had paid cash (took a home equity loan) I had tried to sell it over a year the buyers were not qualified. It was appraised for 245,000. Now I am renting it there only one meter to all and tenants are sharing the bills. The zoning for this house is a single family home, next to that there is an apartment complex, on the same street there is a big house with one acre and the owner divided it he sells the house with some land and the rest he sells the land. Am I going to be in trouble with the city because my house is a duplex? but I bought it like that. There is in laws quarters has small kitchen no stove and we are renting it- is it illegal? I am afraid to start it with a city and get myself in trouble. Any suggestions??? Some feedback?

No I did not -the title company did research but I was not charged any insurance since it was a cash buy no lenders were involved.

Answer 1

so your title search did not turn this up?

and you didn't buy owner's title insurance, right?


you'll need to fie a petition with city for a zoning variance.

good RE attorney might be worth your money here.


GL

Answer 2

I'll let others answer the first questoin you have on this but I wanted to let you know that FHA will write mortgages for duplexes if you are going to live in one of the units. Thus, you may qualify for as little as 3% down with a 2-3% insurance fee. I do not think you would have any problem renting this property. Check the rents in the area for similar properties. Also ask for the records of the duplex. Your real estate agent should be able to get them. With the property priced at 220k, the one unit should at least support 110,000 of the mortgage plus taxes and expenses. I would say if you can get 800 a month rent you should be fine on that property. Go to the website below and use the 110,000 figure to get an idea of how much you can make on the rental of one side of the duplex. Remember too that when you go for a loan, FHA or conventional, that you can use the projected rent income as well as all your other sources of income. The 190,000 house seems way over the top if the other single family dwellings are only going to 140,000. This is a buyers market find properties on the lower end of average, not on the upper end. Lastly, not only could you rent to college students (not always the best renters) but, you likely will be able to find an instructor or staff member of the school.