Posted by ray@lcorn on May 07, 2003 at 16:16:26:
Dr. Tim,
It sounds like they are already fee simple units (re the separate appraisals). That means you can sell them as individual units already, and that’s about the only benefit to a condo. Check the deed(s) and see if they are described as separate units. If so, I wouldn’t fool with a conversion.
If they aren’t fee simple units, then check the locality’s subdivision and zoning ordinance to see if they can be divided. Most jurisdictions have a zoning district that allows “zero lot line” development in order to accomodate townhouse, patio and attached homes. In the long run you’re be better of than jumping through the hoops of setting up a homeowner’s association and all the rigamarole that goes with it.
Last, if they are not already fee simple and you’re set on doing a conversion, then search the archives here for “condo Jim Rayner”. Jim is our resident expert on the subject, and he posted a full brief on how to go about it. You might also send him an email at raynerjr@worldnet.att.net
ray
3 duplexes, can I turn them into condo’s? - Posted by Dr Tim
Posted by Dr Tim on May 07, 2003 at 15:42:57:
There are 3 duplexes for sale, all three side by side. 5000 sq.ft per duplex, 3bedrooms 2 baths. Tenants are half students (college) and family. rent at 800/unit. asking price 510k. separate utilities , meters for gas/heat. alot of parents now are looking at buying a sfh so that their kids can live there and collect rent at the same time. I was thinking of converting to condo’s , what is involved in doing this. The seller said the individual units were appraised at 90k each. She doesn’t sound motivated , but I thought I would ask this question anyway. she doesn’t have any equity in these and wants to cash out to buy something in Florida. she bought wrong in my opinion a year and a half ago. anyway some opinions would be appreciated if there is something that can be done here to sell these off individually. How would you set up a condo association? She also mentioned I could get individual mortgages for each duplex if that matters any.
Re: 3 duplexes, can I turn them into condo’s? - Posted by Jim Rayner
Posted by Jim Rayner on May 07, 2003 at 17:34:31:
Dr. Tim,
she’s not even close to motivated.
hard to tell from what you describe if they are just 3 duplexes or already converted. my best guess is that they are just 3 duplexes that perhaps she acquired in a package deal.
i’d value the income stream at 288K which would support the 90K appraisal she claims per duplex.
as a good conversion deal and assuming that the 800 /month rents are fair market you would need to purchase at 385K less your conversion and rehab costs.
pass and wait for the foreclosure