Conversion: From Duplex To Condo - Posted by whyK-CA
Posted by whyK-CA on April 24, 2005 at 13:06:13:
Hi. I posted this to the commercial board, but the traffic there seems to be not much, so I am posting here as well.
I was looking at MLS this afternoon. One duplex in my area is going for $850K. This is single story duplex look more like two houses side by side. Condominiums which are in bigger communities are going for around $550K. The condos I am comparing have the look of apartments.
I have read some article about condo conversion in the archive and understand that a master deed have to be filed, by-law have to be drawn up, physical conversion work have to be done, notice has to be given to tenants and condo type financing have to be secured.
Here are my questions
Assuming the physical work is minimal (ie separate utilize already etc) and general repairs are all it needs, isn?t it fairly simple and easy to get a condominium type blanket loan on this? (The article I read explained about the need to make a plan presented to the bank in details and they might be picky.)
If I live in one of the unit, does that help secure the loan?
I am assuming condo converted from duplex, which look more like town house style, is more desirable than apartment looking condos, therefore I can demand more. If the apartment looking ones are $550K, mine can go over $600K. Is this true? (I don?t find something like this listed.)
If #3 is true then I can get $1.2M for them after spending $850K, one year of waiting (the time I need to give to current tenants), some legal fee, and some repairs. 1,200K-850K-50K (repairs, fees and cost) = $300K. Plenty left for me. Am I missing something?
Thank you very much for your help in advance.