Condo Conversion Somerville MA

2 Replies

Hello everyone. My name is John and I am new to RE and Bigger Pockets. This is mu first post. I am starting out as an agent focusing on working with investors on multi-families and eventually becoming an investor myself.

I am currently looking at a property in Middlesex County Ma. It is a legal 2 Family but there are 3 units. There is just over 2,700 Sq ft living area and the lot is .09 acres (4,000 sq ft).

My investor is interested in a condo conversion. Would a conversion to 3 units be possible? Would a conversion to 2 units be possible? If anyone with some experience in this area could weigh in it would be appreciated. Thank you.

It is probably possible to convert to 2 condos, unlikely to convert to three. I recently lent on a purchase of a 2 unit in Somerville for a condo conversion, and the borrower recently received his approval from the town to sell as condos.

If you send me a colleague request with a message, I'll send you the contact info of the attorney who handled the legal work and approval.

Having said that, I do NOT recommend a condo conversion as your first foray into real estate investing. That's like taking geometry before you've mastered arithmetic. Unless you have big cash to invest, you may run into issues like:

1. Have to sell both units on the same day if the end buyer's financing requires 75% owner occupied.

2. If you have a cash buyer, your lender still might not give you partial releases, so you'd have to have enough cash to pay off your loan in full when you were selling only one of the units.

3. Might not get your approval to sell as condos.

Condo conversions were hot before the crash, and are hot again, but your mistakes in a condo conversion can cost you big time if you don't know what you don't know. Somerville has it's neighborhoods that are hot, and then some: not so much.

If your investor has enough cash to cover your mistakes, and is willing to do so, then go for it. But you should have a condo conversion attorney tell you what the risks are.