@Julie N. it comes down to rent value. How much rent is the unit getting now, versus what will it get when converted back to two spaces? Most appraisals for multifamily include the income approach to value, so you can estimate how much value it will add.
Definitely another studio or one bedroom will net 800-1000 dollars more. From what i have been seeing the rents are there.
Hi Julie for the most part it all comes down to which method (operating as a triplex or as a fourplex) is producing more rents/income. Did the previous owner combine two units into one because that larger unit would rent for more?
For example, if the property, as a triplex, is producing $2,000 a month, and as a fourplex, would only produce $1,700, why go through the hassle of converting back. The previous owner also may have combined the two units into one due to it having an awkward layout/floor plan. Be sure to take that into consideration as well.
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