Condo Conversions RI
Hi RI Investors,
Looking for input. I have my eye on a 3 family property in Fox Point, Providence. I plan to do substantial renovations to turn the units into high-end condos and sell them individually. The only way the numbers make sense is if I do a condo conversion like this--The owner owes almost as much as the home is currently worth, so trying to whole-sale or do a traditional flip doesn't make sense, and i am not in a position to buy and hold it. I will be using a private lender, possibly combined with hard money. Is anyone doing condo conversions in Providence with success? I mean this is an amazing street, excellent, super walkable neighborhood near Brown and Risd, the best of Providence. My only concern is how fast and for how much condos are selling, if there is really a market for condos (I would need to sell them for approx. $240k each--2 bed, 1 bath, 1050 sq ft., luxury finishes). I anticipate the project start to finish, from purchase of the property to sale of the units, to take 18 months. I hope it will take less time, but with renovations and condo docs and having to close 2 units at once for new condos, I figured factoring holding costs for 18 months would be wise. I am confident in my construction team to do a great, efficient job, but if I can't sell the condos, there is no way this will sell as a 3 family for as much as I need it to in order to get my money out of it in the event of a worst case scenario flop. Advice from seasoned investors around here? Should I go for it??!!
Liz