Turning a Single Family into a Multi-Family
There are two ways to obtain a multi-family investment. Buy an structure that is currently setup with multiple units or turn a single family home into a multi-family home. If you’re buying an existing multi-family unit, make sure the unit is properly zoned. If you want to reconfigure a single family home to multi-family, make sure you’re looking in the right neighborhoods.
In Denver, R-2 zoning districts allow for low-density multifamily units. These districts are typically located in residential areas that are primarily characterized by single-family homes. The two zoning districts to look at properties in are the R-2-A and R-2-B, this will give you the most flexibility to convert an existing property into a multi-family rental and increase your ability to cashflow on the unit.
R-2-A: This district allows for single-family homes and two-family dwellings, such as duplexes and townhomes.
R-2-B: This district allows for single-family homes and two-family dwellings, as well as accessory dwelling units (ADUs) and small-scale multifamily buildings with up to four units.
It’s important to note that the specific regulations and requirements for each R-2 district can vary, so it’s essential to check the Denver Zoning Code and consult with local officials before developing or investing in a property in one of these districts.