Condo conversion or Rental income
First let me start by apologizing for not searching before posting.
I have a test tomorrow on Cloud engineering and didn’t have time to search... yet I am here posting.
My question is based on what it cost to buy multi families in dc (est. $1 million before renovations. Is it a better option to purchase renovate and rent of overhaul and offload individually.
From initial calculations condo conversions are about 25% more (please correct me if I am wrong I really have no clue). But does the higher initial investment pay off in the long run?
The long run being selling to make 500k and investing that into a 16 unit building.
I’m curious to your thoughts/rationale and I am also curious as to what you deal acceptable contracting cost in the dc (northeast area).
Before you say “it varies”, let’s break it down like this:
Section 8:
Mid level rental:
High end rental:
Condo conversion:
Any information will be much appreciated.
P.S. I promise I will send my convoluted spreadsheet out to those who asked right after I finish this exam. Please feel free to send it back to me with your comments or corrections.