Americorp Real Estate
Brokers Associate, e-PRO
You can go to room 1109 at City Hall and pull an FOI request.(free) The RS3 will govern, unless the FOI request shows that the Basement Unit was created with a valid permit. Ceiling height as indicated is legal. The plus sized lot helps you. The FOI will either help you get something "grandfathered" or show you that you need a zoning change or you will have to remove/convert the unit. In my experience, these type of units turn out to have been created without a permit. If you have any other questions please feel free to contact me.
OR, just buy the building at a price that is comparable to the average, original TWO flat in the neighborhood. This may require the reduction of the purchase price.
You may rent the unit to a family member legally, as far as I know from past dealing with a situation like this.
Don't ask, do it. Stay friendly with your neighbors at all times, if a government agency complains, just "i'm sorry, I didn't know." and remove the bathroom.
If you are able, sell all property in Chicago and buy in Naples, Florida. Prices are LOW and rents are high. A $80k home rents out for $1,100.00 per month. This amounts to at least 9% interest on your money.
Can the buyer use a FHA 203K to remove the illegal unit and stil purchase with a lower down payment?
It is impossible for anyone to determine what can be done without a visit to the property.The Zoning Cert is what the City believes to be the legal number of units. You may be able to duplex the first floor or other situation. You should have an architect or other Zoning professional determine feasibility for a third unit or feasibility for the otherwise finished basement. Worst case, it needs to be removed, but a knowledgeable architect may help you sort the situation out with a visit to the property.
Keller Williams CCG
From a financing standpoint, you will need to either pay cash or go with a conforming loan with 25% down. FHA does not allow "accessory units".
If you have any other questions, please feel free to call or email.
Best of Luck
312-719-0420 Any Time