OfflineI have an investor looking to put money into a deal if all the numbers add up. This building has 11 units with an elevator in the building. The building is a total rehab, priced at 99k but it has been on the market for 649 days. I believe I can possibly get the building for a little less being that it was recently reduced by 10k. My question to my peers I would love to rehab and sale the units as condos. The property has a newer roof, elevator needs servicing and there's possibly 45k worth of renovations. What are the steps to convert to condos and is this a good idea?
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There are different rules in every area. I would suggest you talk to the city planner and get their code requirements. They are usually a wealth of information for these types of projects and happy to assist you.
The one thing that may be a major cost is something called a fire wall. You need what they call thirty minute wall. That means it would take 30 minutes for a fire to burn through to the next unit. I've heard them as low as a 10 minute wall. Again, check the city codes. Many older units don't have these.
Another thing to try, once you get your project going, is to talk to the tenants if the property is occupied, and see if any of the them would be interested in buying the unit they live in. If they are interested, get deposits from them. This will help with the financing. You may find there could be as many as 50% who would want to buy the homes they are already living in. By showing that many pre-sold units, it really strengthens the ablity to finance the project.
That is what I know about them. I'm sure there is more.
I hope this helps.
Jim