Converting An Apartment Building To Coop
I have this post in the multi family forum, and I got no reply. Let me try here
I am in thinking of buying a high rise which has 60+ apartments in a descent area, however the numbers from the rentals are no great (CAP is 7, very high expenss).
Does any one have an idea how to proceed to sell those units as Condos or a Coops.
This can be a very lucrative approach to real estate investing - but it takes time. Go to the county/city offices to find out about subdividing/condo-ization process. You will basically have to create a master deed (and all the plans/maps) for the property, and then subdivide that deed into the common areas (parking, greens, offices, roads, etc) and the individual lot deeds. Depending on your local codes, you may be able to avoid running all separate utilities/meters to each condo by having the Home Owners' Association dues cover that. If you need to run all new utilities and meters, you'll have a lot of work. If not, it will be less - but expect all the engineering and legal costs to be significant and the process of getting all of this approved a long one (12mos +). If you have low interest costs and can get the place full with renters (if you won't be tearing their places apart for new utilities) you can make a killing. Take a look at what the comparable condo would sell for in that area, and get an estimate from a project manager who is familiar with this type of project in your area to see what you'll make.