Converting a 5 Unit Small Apartment Complex to a 4 Unit Multi

5 Replies

Originally posted by @Drew Lied :

Is it possible to buy a 5 unit small apartment complex and convert it to a quadplex and still get the benefits of owning a quadplex?


Totally - however, SO many questions here!

Why, exactly? Is it going to change structure? Do you want to do this to change to a better/more favorable debt-service? Why? How big are the units? Can the 5th be turned into something else? What is it zoned for currently? Why?

Man, this is very intriguing!

Originally posted by @Dan Mundie:
Originally posted by @Drew Lied:

Is it possible to buy a 5 unit small apartment complex and convert it to a quadplex and still get the benefits of owning a quadplex?


Totally - however, SO many questions here!

Why, exactly? Is it going to change structure? Do you want to do this to change to a better/more favorable debt-service? Why? How big are the units? Can the 5th be turned into something else? What is it zoned for currently? Why?

Man, this is very intriguing!

 Funnily enough, I have done the opposite - turn a Tri into a 5-unit (then sold). Didn't do it properly though (re-zoning), which bit me in the A**, so be mindful, regardless.

The reason I ask is this is my first potential investment and I know it's easier to get financing for a 4 unit. In addition, the fifth unit is very small and converting one unit into a bigger space would be more beneficial in the area. Thanks for the help guys!

@Drew Lied if the only reason would be to do it so you get more favorable financing it is not going to work out so well.  It is likely priced as a five unit and you would be adding a sizeable chunk to your rehab budget to do the conversion.