Duplex vs Multi-family home

[optima]

Hi,

I`m looking at my first property as a REIN memeber. It is located in Hamilton listed at 200K with monthly rents at $1900. Therefore, the numbers work out well.
It was listed as a Duplex. When I checked it out I found out there are three sepearate units being rented out. After looking at the offer I questioned the duplex. The other realtor revisted the offer and tried to change it to single family. I questioned the mis-representation of the property. They then came back and revised it to zoned for multi-family. The other agent said he`s spoken with the City and the seller`s lawyer and feel this is the way it should be listed. I found out this was the realtor the suggested these changed and not the seller. They showed history of the property being listed as mult-familty.
I can verify the zoning with the city prior to moving forward. However, does this sound like something worth pursuing? If it is zoned for multi-familty is it still a major problem having three units in the house? Should I walk or continue to pursue?

Thanks
Dan

 

[housingrental]

Give a phone call in to development services in Hamilton
They should be able to provide you information on what the property is registered as, and what the possibilities are for conformity.
From there, if worth examining further, you should examine the costs for it to meet fire, building, and electric requirements.
Do not waive conditions until you have all of these aspects locked down.

 

[alyna]

QUOTE (housingrental @ Nov 20 2010, 11:34 AM)
Give a phone call in to development services in Hamilton

They should be able to provide you information on what the property is registered as, and what the possibilities are for conformity.

From there, if worth examining further, you should examine the costs for it to meet fire, building, and electric requirements.

Do not waive conditions until you have all of these aspects locked down.




I agree, They can provide you all the necessary information you need to know.Give them a call. Good luck.

 

[optima]

Thanks all. I`m in the process of doing that.

 

[invst4profit]

If $1900 is inclusive this does not look like a very good deal. If utilities are extra that is a different matter.

If the units do not have separate services, heat, hydro etc. you should seriously look into the cost of separating. It is a good idea renting inclusive in Ontario in my opinion and is a deal breaker. With the upcoming hydro increases and the very restrictive allowable rent increases the future does not look good in Ontario for any LL renting inclusive.

Think about it.

 

[optima]

Hi Greg,

Great advice. The utilities are extra that the tennants pay on top of rent and the units have separate services. I just got the zoning report back saying it`s a legal three unit non-conforming. So everything is looking good so far. Now it`s on to home inspection etc.

Dan