Converting a 6 unit to 5
We are trying to convert 2 units into one on the top floor of a 3 story, 6 apartment building. Does anyone have advice or recommendations? We are on a tight budget and timeline. Thanks
We are trying to convert 2 units into one on the top floor of a 3 story, 6 apartment building. Does anyone have advice or recommendations? We are on a tight budget and timeline. Thanks
You don’t give much detail, but my best advice is this: do what you propose on two floors, not one and turn it into a 4 family. You will accomplish a few things. You will be able to qualify for a conforming 30 year fixed rate residential loan, which only applies to 1-4 family owner occupied houses; the rate will be lower and the terms better than commercial financing, which you probably have. You will also be able to eventually outgrow rent stabilization over a period of time, not short, but it could be worth doing. Your real estate taxes won’t just go down, it isn’t that easy, but going forward the schedule of increases for a 4 family is going to be better than on the 5 or the 6. Last, don’t do a cheap renovation – you need to be competitive and have the nicest apartments on the block, so that if the economy is bad for a prolonged period, you will attract good tenants.