Three duplexes under 1 deed, how can i split them up?

9 Replies

Greetings BP,

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. 

(240) 310-9636

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.

@Hadar Orkibi Thank you for the feedback and suggestion. I did not think about the taxes

LOL@Mitchell Pollard i'm not that luckly. If it was Rockville it would have been bought sight on seen. You can't get 1 bedroom condo for less than 250k in Rockville. The property is in Hagerstown.

(240) 310-9636

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.

Russell Brazil, Real Estate Agent in Maryland (#648402), Virginia (#0225219736), District of Columbia (#SP98375353), and Massachusetts (#9​0​5​2​3​4​6)
(301) 893-4635

Planning to self manage?

@Russell Brazil thanks for the feedback, i'm still doing my research to see what makes sense.

@Michael P. Hopefully not, i'm trying to get out of that business and focus my energies on more acquisitions.

(240) 310-9636

Any contractors in the Hagerstown area?

(240) 310-9636

@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 

Join the Largest Real Estate Investing Community

Basic membership is free, forever.