Duplex to SFH Conversion

[Trevor Dominique]

Hey BP,

Just wanted to reach out to BP nation and see who here has taken on a duplex to SFH conversion as a flip? I am a relatively young investor at 23 years old, and I have only done 2 flips while also owning 6 rental units. I have identified a duplex listed for $200k. I think I could likely buy this for around $180k, and the ARV as a SFH would likely be in the $380k-420k range. It needs a full gut remodel, but this seems very doable given that I would have around $120-140k to work with as a rehab budget (home is only 1600 sq ft).

This project would be a bigger scope than the two flips I have done, so I am wondering, what are some of the hidden costs and challenges to doing a conversion like this? Zoning, appraisals, pulling permits, etc. 

Thanks!

Trevor

[Andre Taylor]

Hey Trevor! I am actually doing this right now.. I bought a duplex that was already converted to a single family last year back in July 2019. The property is about 2300 Sqft. What Was suppose to be a cosmetic upgrade but turned out there was black molded so had to gut the whole building out. Cost you will have to consider is architecture plans which could cost up to $10k; which my plans is costing about $10k. Then if you are moving walls to re-arrange the space you looking at structural engineering cost that could be  $1-$4k.  Both your structural and architecture will be communicated hand and hand and the end result they should hand you approved plans by the city. If you are hiring a GC they should be working with all the subs to pull permits. If you are planning to GC this yourself. Make sure all your subs provide you copies of their insurance and during the design phase with your architecture you sit down with your contractors to give them the scope of work so they can give you good detail bids but the cost of permits should be included in their bids. If your duplex is all brick; your masonry could be a big expense if the tuckpointing is not up to par. Other things like replacing roof, plumbing, electrcial, wont be bad because everything is open. You probably say money on framing if the existing framing is good. I have to redo all framing. Even the stair case which is not to code... building was built in 1910.