Is This Something To Keep Or Let GO!
115 unit 99,220 sq ft sale price 4,250,000 original loan at 3,460,000 current bal is 3,176,448 at 6.77 fixed maturity dat 10/2008 P&I 23k monthly reserve bal at 34,507 tax escrow at 17,043 and insur escrow at 23,668 Rent per leases 846,169 vac loss at 154,890 other losses at 118,452 other revenue at 40,096 for total of 612,921
Expenses total 466,504 with an NOI of 146,417 just to be at a cap rate of 10.4 I would have to offer 1,401,138 is this even worth going into. Please feel free to comment thanks
Create a detailed business plan then do a joint venture with a local developer who has the techincal know how and access to the capital needed to cover all the hard/soft costs of the conversion. [ Edited by REALCHOICE on Date 08/20/2006 ]
What will the post-conversion units be worth?
Is there a local ordinance governing condo conversions (typically including notice provisions and waiting periods for the exisiting tenants.)
Will your bank allow you to pay off less than all of the loan and give partial releases as you sell units?
I disagree that you need a local developer, although it may be helpful. An attorney who has drafted condo declarations is more likely to be helpful.
Hey Bargain,
Are you going to manage it yourself? I know you have done plenty of flips to shake a stick at.
With 10 years of management behind me, knowing the area and the rent rates before you get into the situation would be best to know.
If you get a property management company to deal with, make sure other investors are using them. I learned the hard way. DO not just go through the Yellow Pages.[ Edited by joel on Date 08/04/2006 ]