Lender · Los Angeles, CA · Member since 2015 · 278 posts · 78 votes
Good Evening Bigger Pockets Family,
One of our Clients buys apartments and converts them into Condos. A recent project he did was in Fairfax / La Brea. It was a 4plex that he converted into 4 separate condos.
Value as a 4plex apartment: $1.2m. City of Los Angeles took almost 1.5years to complete plans &permits conversion into Condos. Once they were entitled as Condominiums, each condo sold at $890k. Four Condos x $890k = $3,560,000. All four condos sold in One Day. Within 1.5 years, he was able to increase the value from $1.2m to $3.56m.
Are any of you doing the same ? In California ? Or in Other States ? I would love to hear your input on this.
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
9y
Answers: Not quite, No, Yes.
There are "spot" areas where your client's deal makes sense. Good for your client. My impression is you really have to like dealing with government bureaucracy.
In Florida, the 'reverse condo conversion' (condos -> apartments) seem to be in play in the last few years. But there are lots of opportunities not worth pursuing.