Converting A Duplex To Condo
I own a duplex in Columbus, Ohio. I am interested in selling it. Is it worthwhile to convert it to a condo and sell separately, and what is involved? Is it simply legal paperwork, or are structural modifications involved. Can you really get more for the property by splitting it and selling it separately. What is "fee simple."
Fee simple- some definitions:
"An estate in real property, by which the owner has the greatest power over the title which it is possible to have, being an absolute estate; an estate of inheritance belonging to the owner, that he may dispose of, trade, or will, as he chooses."
" An estate in land of which the inheritor has unqualified ownership and power of disposition."
" Absolute title to land, free of any other claims against the title, which one can sell or pass to another by will or inheritance. This is a redundant form of "fee," but is used to show the fee (absolute title) is not a "conditional fee," or "determinable fee," or "fee tail."
"1. An estate in land of which the inheritor has unqualified ownership and power of disposition.
2. Private ownership of real estate in which the owner has the right to control, use, and transfer the property at will."
Chris
On my most recent application, the cash flow (positive or negative) was considered part of my income. But then again it was a refi and so was rented out already. Also be aware that the bank considers an income of 133% of the PITI payment to be breaking even, so a property you think cash flows may have a negative effect on your income in their eyes. This is to account for vacancies, maintainance, etc.
Chris
Quote:
On 2007-01-09 16:14, ypochris wrote:
On my most recent application, the cash flow (positive or negative) was considered part of my income. But then again it was a refi and so was rented out already. Also be aware that the bank considers an income of 133% of the PITI payment to be breaking even, so a property you think cash flows may have a negative effect on your income in their eyes. This is to account for vacancies, maintainance, etc.
Chris
Agreed. This always shocks people when they learn about this. Last time I checked the lenders I use were quoting 70-75% of rental income, even though I could prive a history of low vacancy and maintenance expenses. Those are the underwriting guidelines used for the loan.
I have three words for you: Loan Servicing Company.
[addsig]
Since Tonowanda is right next door to Buffalo, my experience in Buffalo may be relevant but then since you are from Buffalo, you most likely already know this.
We have totes stolen frequently. Buffalo does not charge us for new totes however it takes a very, very long time to get them. Meanwhile, they always pick up garbage bags while the tote is being replaced. I highly recommend you paint the street address on the totes to help avoid them being stolen.
Additionally, Buffalo gives us however many totes we are willing to pay for. I have a property with a large house in front and a small cottage in back. A mother lives in the front and her daughter in the back so I have them share one large tote. The quarterly bills vary based on the # and size of totes on the property.
The biggest issue I have in Buffalo is making sure the tenants pay for any totes left on the street 24 hours prior or after garbage pickup. That has been a bigger issue than the damage of existing totes.