I'm currently evaluating a off market deal in Maryland. Its 3 duplexes side by side under 1 deed for 230k (picture below). As i consider my various exit strategies, i was curious if anyone knew how to split up or give each duplex their own deed? This would give me some flexibility to sell them off individually if needed.
To separate them you will need to go through a subdivision.
It’s not a full condo conversion if you are only separating the buildings and not each unit.
You will need to talk to land sourveyor and estimate the cost.
It is likely that you will need to upgrade the services and some utilities, also you may need to fire rate the external walls of each building. It’s all depends on the city rules.
From finance point of view the Duplex will be more attractive to small investors or Home buyers that could house hac.
These will be appraised as per unit approach- CMA.
As 6 units you can increase the NOI and appraise with the income approach.
Take in account that Taxes and Insurance may be higher as 3 separate buildings.
You found 3 duplexes in Rockville for $230k? That’s a ridiculous price! No need to evaluate any longer. But that asap. If not I’ll buy it and give you a wholesale fee.
You will need to go to your local buildings department to apply for approval to divide.
In Hagerstown, that is probably more valuable as a 6 unit rather than as 6 seperate 1 units.
Planning to self manage?
Any contractors in the Hagerstown area?
@Kwame Knights Hey Kwame, nice buildings! 🤗
I'm just curious other than for the disposition strategy purposes, is there any other reason(s) you are thinking of separating the leases?
I think it is actually not a bad option to leave it as is, I say that because it could be better to sell all together to another investor as you start to scale up.
Just a thought. Goodluck. Thanks! - Ola
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing