I've seen a number of side by side duplexes in the Bay Area for sale and am wondering if they could be split and sold as separate properties like a row home. They currently have one parcel ID but 2 completely separate entrances. How can I find out if it's possible and how to do it? Has anyone done it in any state? Pro's v Con's?
@Ratesh D. Give your counties’ planning and zoning dept a call. They will more than likely want a specific property to ensure this can be done. You’ll want to ensure your prospective property has separate utility meters for all utilities.
This has been done and happens a lot in San Francisco. What needs to be done is that the building needs to be turned into wither a condo or a TIC. TIC is more expense for the buyer to get a loan on, but in today's low inventory it is less of an issue. Also most TIC 's sell for less than an equivalent condo. If you buy a multifamily home and turn it into a condo that would be the most popular. However, cities have certain requirements to do that and you would have to have enough parking to satisfy the city requirements as if you were building new. The mechanical systems will also need to be brought up to current code. That, along with the legal fees can be expensive, but probably worth it if you have the financing. It was very popular to take large apartment buildings in the 70's and 80's and turn them into condos. Mountain View and Sunnyvale are filled with many of these buildings. If you see a condo with no inside washer and dryer and oak cabinets there is a good chance that the building was originally an apartment building.
TIC means Tenant in Common. Everyone is on the same loan. In condos everyone has their own loan.
Thanks everyone. I will start there.
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