Multiunit In Nice Area?
So, I'm looking at 2 multi-unit houses in a nicer area of the city. my total purchase would be about 700k, and that would initially give me 9 units. I can get a private investor to lend for the purchase and offer no payments until I finish converting 9 units into 14 one bedroom units (they rent for about 750) and refinance to pay off the loan...
My question is, what do I have to look out for when converting from 9 to 14 units? Do I have to have housing unit allocations? Do I have to have permits for this?
thanks
You should contact your county and city planning departments
"There could be building code issues that would be expensive to repair"
A lot of factors can go into this type of project such as:
Your current zoning
Area impact
Bringing units up to code
You may need an occupancy permit before any tenants can move in
Property owners often make the mistake of relying on only two methods of valuation
- Realtor opinion based on recent similar sales
- Income and expense formulas
The third method of valuation: conversion analysis.
- Are you familiar with the saying "The sum of the parts is greater than the whole? Nowhere else does this principal holds truer than in the Rental Property arena.
You should retain a lawyer, a real estate agent and other professional in this change.