Say you have a house that a woman wants to sell to you. In fact, let’s say it is your first deal (for all of you first time dealers out there, this one is for you). So the house has two little apartments that have been added to the side. Is this a good deal? This may be the question you are asking yourself. Maybe you are wondering if you should pursue this? What you really should be wondering is, is this legal?

This is considered an illegal add on and they are trying to sell it (instead of a 3/2 they wanted a 5/2). What should you do? I would suggest going back to her and telling you are not experienced enough to get into something like this and you were advised not to deal with it because she has to sell it the way the county has it listed as a 3/2.

And she probably won’t like that. In fact, I’ll bet she will call you back saying she had talked to a couple of realtors and they told her the same thing. She has now realized she cannot get what they were originally wanting, and so could I still do it?

What do you tell her?

Think about it. You pretty much already have.

When you are interested in the property you have to buy it on its legal use and there is nothing to say that you can't go try and convert it and have to consider that a bonus. You may be wondering if you can turn around and lease option it with those two little apartments there. Is that possible? The answer is no. Not if they are not legal. You don't even know for sure that they are not legal (from what she has told you). Realistically, that would be the first thing I would want to check even before I bought the property and she may have asked the realtor the wrong question to get the wrong answer as well.

She did not have a permit to add them on, but that does not mean that they can't get them permitted.

Think about it this way-if the city comes out there and they do comply with city code, and they do comply and it doesn't violate the zoning ordinance then you may very well get it converted and make it a higher and better use out of it. But you don't know that for sure and you don't want to buy the property and take over somebody else's mess. You can find all that out while you have it under contract. If it is a single family it is doubtful they would be allowed to have the little apartments.

But if you can get a good deal on it as a house... then why not?

Know your answers before you close so you know whether to pass or play.