Author Topic: Does an unfinished basement plus two units = triplex?  (Read 1560 times)

$200k

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Does an unfinished basement plus two units = triplex?
« on: December 20, 2016, 07:29:49 PM »
Seller is offering a "triplex" that consists of a 2/1 (1,200 sq. ft), a 1/1 (800 sq. ft), and an unfinished 1/1 (1,000 sq. ft) basement for $120,000. 

Rents for 2/1 = $560
Rents for 1/1 = $475
Rents for 1/1 basement = $550 (estimated)

Even if the basement was finished (prolly another $10-15K), this wouldn't be a "real" triplex right or wrong?  Would a lender view this as a triplex or duplex? 

Goldielocks

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Re: Does an unfinished basement plus two units = triplex?
« Reply #1 on: December 20, 2016, 11:24:58 PM »
?!

The basement is not an apartment until finished with a bathroom and kitchen with stove, and ideally, a separate (or lockable) entrance.

Not a triplex (yet).   Triplex after the unit is created.

Your financer might also insist on only legal suites (with fire separations) for anything more than a duplex.

lhamo

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Re: Does an unfinished basement plus two units = triplex?
« Reply #2 on: December 20, 2016, 11:44:36 PM »
What is it zoned for?  You can call it whatever you like, but if the zoning doesn't allow for a legal triplex you may be in for a lot of headaches down the road.

Here in Seattle, people typically don't advertise things as duplexes or triplexes unless the property is zoned for that and they have had all the work appropriately permitted, etc.  I believe the inspectors can order you to rip out anything that has been put in without permits.  And there is so much anti-development sentiment here you just need to slightly piss off one neighbor by having a tenant park too close to their driveway or something to get the inspectors called on you.  Buyer beware....

Berubeland

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Re: Does an unfinished basement plus two units = triplex?
« Reply #3 on: December 21, 2016, 06:38:18 AM »
Depending where it is, you might be in a world of hurt. It might be impossible for it ever to become a triplex.

I'm in the Greater Toronto Area and in this area, depending on what city you are in, the rules are different for duplexes and triplexes.

I was the proud manager of an illegal triplex, and when the basement tenant called the fire department after pulling out a smoke alarm battery, we ended up having 30 days to do the work.

1- First we had to evict all the tenants because of the amount of work required.
2- We had to rip off all the drywall on the stairwells and insulate the stairwells
3- We had to drywall with a 2nd sheet of drywall the ceiling of the main floor
4- We had to drywall the entire basement ceiling throughout.

Those were the main issues and the changes from duplex to triplex. The owner kept asking me if he could sell and didn't have the money for the work.

It was ZONED properly, if it wasn't, it just would never be permitted, and you overpaid for nothing because of a slick sales job.

adamcollin

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Re: Does an unfinished basement plus two units = triplex?
« Reply #4 on: December 22, 2016, 03:26:33 AM »
I donít think it can be viewed as a triplex.

NoNonsenseLandlord

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Re: Does an unfinished basement plus two units = triplex?
« Reply #5 on: December 23, 2016, 12:46:11 PM »
What is it zoned for?  You can call it whatever you like, but if the zoning doesn't allow for a legal triplex you may be in for a lot of headaches down the road.

Here in Seattle, people typically don't advertise things as duplexes or triplexes unless the property is zoned for that and they have had all the work appropriately permitted, etc.  I believe the inspectors can order you to rip out anything that has been put in without permits.  And there is so much anti-development sentiment here you just need to slightly piss off one neighbor by having a tenant park too close to their driveway or something to get the inspectors called on you.  Buyer beware....

Great advice.