I have an off market property which is condos right now five units total owned by two owners both wanting to sell. Taxes are high but after the conversion will be lower. Sellers are looking for 600 K. Garden unit is three bedroom all other ones a two bedroom. The owner also sad that the garden unit could be split into two units which would then be six unit multifamily. What do you think ?
Can you get the current tenants out without too much hassle?
If the condo conversion goes well, what could you sell the finished condos for? (Based on comps)
I would be very skeptical about what the owner says. It's worth the effort to verify.
How strong is the demand for condos in the local market?
@Oleg Komarnytskyy I think you are going to have trouble getting 600k for the whole place assuming the buyer still has to deconvert the whole thing to condos. Remember, you have to pay for six closings as the buyer and there is additional paperwork to do the deconversion that the attorney has to do. 600k is about what a 6 unit in Elmwood would be worth without all that hassle, so what upside is there for a buyer to go through all that trouble? Now if you could get the whole thing for 400k maybe it starts making sense.