56 Unit Apartment Complex - Subdividing Into Fourplexes For Resale?
Hello: I am considering buying a 56 unit apartment complex in Ohio. The complex is made up of Fourteen 4 unit buildings. It is currently split into 2 parcels. 1 parcel has 7 buildings and across the street the other parcel has 7 buildings. The complex is set up where all of the buildings are in a row with a common driveway in front with parking and a common driveway in the back. Each unit is a townhome style design and has its own garage. What I would like to do is buy these buildings and then divide it so each 4 unit building has its own parcel ID. That way I could market these 4 unit buildings to smaller individual investors. I would do this because 4 plexes are a lot easier to get financed and some may even be owner occupied. I will be able to sell them at a premium per unit because of this. My question is has anyone out there done this before? Can it be done? If so, what costs are there? I guess I could always condo convert it, but I think subdividing into 4plexes and selling them off would be easier and just as profitable. This complex is located in Franklin County, Ohio. Please any response would be appreciated. I need to move on this one pretty quick. Thanks in advance!
Lots of options here. Divide to seperate parcels, do a townhouse association. Sell individual units rather than the 4 units.
Costs to do a subdivision vary but are usually limited to the cost of a survey, new legal descriptions, legal fees and whatever the municipality or other entity imposes in terms of fees.
Other questions include what you are going to do with the streets and common areas.
[ Edited by commercialking on Date 10/28/2005 ]
Read, Read and More Reading.
I am not sure about doing it without a contractors license. I am pretty sure you wont be able too.
You have your answer then.
Go for it!!
I would be interested in this as well. AnyOne?
I am in a similar process right now, I have been rehabbing a completely gutted house. Big project, many headaches and lots of contractors to deal with. The most valuable information I have received HANDS DOWN has been from reading through this rehab forum. There are pages and pages of already posted questions and many answers with a myraid of opinions. Not everyone will give you the same response, so it gives you the opportunity to examine which strategy will work best for your particular situation. Read through these posts every day and learn more in a month then you will in 1 year of conversation with contractors! Most people quit the real estate biz when they see how much work it actually is, but you seem to be on the right track, just dont give up!
Best of Luck, B
The only non bank lending that I have talked to are pretty much Hard Money Lenders.. Wanting the money back in 15 to 30 days.. am I looking in the wrong area?
Yes, I have been framing since I was 15.
My grandpa did it and so I learned it and grew to love it.
I got your email and will send a response soon.
They will be, but you want to make sure you are up to speed on how things are done correctly.
Remember, do it right first, so you dont have to pay someone to come in and re-do it.
sKauGH,
I think if you are experienced in a particular area you should use that to your benefit. Especially when you are just starting out. As previous post stated, the work must be done right the first time. (though if you are experienced it will be).
As for landscape, you can use the knowledge of your local nursery to help with a landscape plan (often for a small fee, or free if you buy a set amount of product from them.) You can take that plan to a wholesaler or tree grower and get the product for pennies on the dollar. If you are comfortable doing the final grading and bed preparation, so be it, If not contract it out.
Best of luck
Dr D