Converting 3-family to Condo?
Has anyone had experience converting a 3-family brownstone into a condo? I have just purchased a 3-family and plan on living in the owners duplex, and renting out the top 2 floors. But down the line, I’m interested in possibly selling those two apartments and am therefore trying to find out what is required so…
Has anyone had experience converting a 3-family brownstone into a condo?
I have just purchased a 3-family and plan on living in the owners duplex, and renting out the top 2 floors. But down the line, I’m interested in possibly selling those two apartments and am therefore trying to find out what is required so that in the fututre should I wish to convert, I don’t regret not doing something now that could have been helpful. (For example, if I need to change my boiler or heating system because it breaks, should I go ahead and change the heating system to meter each apartment seperately, or just go with another replacement unit until I am ready to convert — again, this is just an example, I don’t want to tax your time and energy answering a specific aspect of the potential conversion as I am guessing there will be several pieces like this).
Also how much does an architect cost, and what are the legal fees and timeframe involved? I ask because I don’t know if converting the property would even make sense financially.
Thanks for your time.
lived in a coop for 10 years. Never want to share a building with anyone, even if it were a condo instead. You have to have meetings about petty, stupid stuff and in a small building there is no anonymity. I can’t even begin to tell you what a drag it is, but start reading the Q&A in the Times Real Estate Section and you’ll start getting an idea. I’d say keep it your home, rent it out and agree with those above, buy another property if you want something else and then keep it as investment
You have to get a lawyer and an architect and engieers to file an “offering plan” with the NYS Attorney General. There are lots of drawings, specifications and paperwork involved. I’m surprised they told you it would only cost $40,000.
If you can convince your neighbors on both sides and the back of you to go condo, it might make it more worthwhile.
i had asked a RE broker about this very same issue not that long ago. while i tend to be suspicious about almost anything that comes out of a broker’s mouth, what she told us seemed to make sense.
she basically said it wasn’t the best idea (and our place already has separate meters etc, so we wouldn’t even need to rennovate). legally it takes a long time and a bunch of money (she said $40K but that seemed rediculous to me). plus you have to keep the apartments vacant while this legal work is done. and in the end you may end up with new neighbors with whom you are stuck, you can’t opt to not renew their lease anymore.
seemed to me that we’d probably be better sitting tight for a long while, saving our pennies, and when the time is right, get a new place and keep the old as a pure rental.
I don’t think it’s a good idea to convert such a small building to condos. It would be very expensive to do and most likely, unless you’re a very experienced developer/flipper, I wouldn’t do it. Lots of folks attempting this now are having problems.
You can always take out another mortgage in the future if you want cash to invest elsewhere. In theory, it may sounds like a get rich quick scheme, but I’d bet the costs outweigh the benefits.