Splitting a Multi-Family into Condos - Columbus, OH

Local Real Estate Networking
8yFollow

Splitting a Multi-Family into Condos - Columbus, OH

Matthew Rosebaugh
Rental Property Investor · Columbus, OH · Member since 2018 · 27 posts · 13 votes

I have seen a LOT of multi-families split into condos throughout Old Towne East, German Village, Merion Village, etc. Has anyone been through this process or have any advice? 

5Reply
92 views

Most Popular Reply

David Yoder
Developer · Columbus, OH · Member since 2008 · 117 posts · 63 votes
7y

Here is what i know about these type of ideas.  

These are at least the minimum.  

For a condo split you're looking to 

1. Have a "firewall" (fire retardant drywall) all the way up between the units.

2. Each unit has to have separated utilities (water, electric, gas, plumbing).  Specifically the waste pipes needs to run into a Y in the yard then to the street.

3. You need an architect to draw up and define each space to change the deed.

4. A lawyer needs to set up a Condo Association and rules, etc. 

5. You have to file with local government.

For Columbus, condo splits really don't make sense until you get value north of $200k per unit.  They just don't sell that well if there are readily available house for marginally more.  

Like Robert was saying also, if there aren't comparable sales it's going to be hard for an appraisal and realtor to confidently handle these.  

3Reply
See this reply in the discussion

13 Replies

Jump to latestLatest
  • Jon H.
    Columbus, OH · Member since 2018 · 7 posts · 4 votes
    8y

    Are you asking about the process of splitting or re-combining?

    I've re-combined a residence that was originally single-family and converted to duplex.  It was mostly just removing a single wood-stud and GWB partition wall.  It's in OTE.  I might know the homeowner ;)  

    Fortunately, the drywallers c. 1950 "coped" the drywall around the original oak header/capitol over the door in the wall they built to divide.  Other things weren't so clean.  It's a center-hall four-square.  They converted dining room and one parlor/living room into bedrooms by adding closets.  They destroyed the oak trim around those doors - like it's completely gone in one case and sliced through in another.  They also put a steel entry door between the two units with a clasp lock on both sides.  Destroyed the trim.  Fortunately in the kitchen of the remodel - mostly new trim and painted in there anyway.  The rest is tiger oak - mantles, columns, pocket doors.  

    I've got a ton more experience related to this property.  Happy to share.  

    2Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    8y
    Originally posted by @Matthew Rosebaugh:

    I have seen a LOT of multi-families split into condos throughout Old Towne East, German Village, Merion Village, etc. Has anyone been through this process or have any advice? 

     Yah we've had clients do it on flips. Depends on the area. I'd be happy to take a look. We've thought about it as well, depends on the area. Like on OTE i wouldn't do it north of Spring St because there have never been any condos that sold north of there. Just spoke to the guy who did the one close to there and it took 270 days to sell one of them. That's a long time. one year to rehab and split and another 270 days to sell. 

    Some areas the duplexes are selling at the same price not condoed which makes it nice. We are talking like $180 a foot for resale of multifamily which is pretty good in some downtown markets mostly like german village in columbus. 

    [email protected]786-494-6766
    Section 8 Launch52 Reviews
    WebsiteView Page
    1Reply
  • Matthew Rosebaugh
    OP
    Rental Property Investor · Columbus, OH · Member since 2018 · 27 posts · 13 votes
    7y
    @Robert Ellis it’s on Franklin West of Ohio. Seriously considering the condo option.
    0Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    7y

    Not a bad area, is it an up down or side by side? i've seen plenty of condo conversions. Do you own it free and clear? depending on who your bank is if you have a loan they may not do it. If you have more of a community bank in columbus they would probably do it depending on if this was a personal residence or investment property. 

    [email protected]786-494-6766
    Section 8 Launch52 Reviews
    WebsiteView Page
    0Reply
  • Matthew Rosebaugh
    OP
    Rental Property Investor · Columbus, OH · Member since 2018 · 27 posts · 13 votes
    7y
    @Robert Ellis Up down apartments. I financed locally through Union if you have any experience with them.
    0Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    7y
    Originally posted by @Matthew Rosebaugh:
    @Robert Ellis Up down apartments. I financed locally through Union if you have any experience with them.

     up downs are tough sales 

    [email protected]786-494-6766
    Section 8 Launch52 Reviews
    WebsiteView Page
    0Reply
  • David Yoder
    Developer · Columbus, OH · Member since 2008 · 117 posts · 63 votes
    7y

    Here is what i know about these type of ideas.  

    These are at least the minimum.  

    For a condo split you're looking to 

    1. Have a "firewall" (fire retardant drywall) all the way up between the units.

    2. Each unit has to have separated utilities (water, electric, gas, plumbing).  Specifically the waste pipes needs to run into a Y in the yard then to the street.

    3. You need an architect to draw up and define each space to change the deed.

    4. A lawyer needs to set up a Condo Association and rules, etc. 

    5. You have to file with local government.

    For Columbus, condo splits really don't make sense until you get value north of $200k per unit.  They just don't sell that well if there are readily available house for marginally more.  

    Like Robert was saying also, if there aren't comparable sales it's going to be hard for an appraisal and realtor to confidently handle these.  

    3Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    7y
    Originally posted by @David Yoder:

    Here is what i know about these type of ideas.  

    These are at least the minimum.  

    For a condo split you're looking to 

    1. Have a "firewall" (fire retardant drywall) all the way up between the units.

    2. Each unit has to have separated utilities (water, electric, gas, plumbing).  Specifically the waste pipes needs to run into a Y in the yard then to the street.

    3. You need an architect to draw up and define each space to change the deed.

    4. A lawyer needs to set up a Condo Association and rules, etc. 

    5. You have to file with local government.

    For Columbus, condo splits really don't make sense until you get value north of $200k per unit.  They just don't sell that well if there are readily available house for marginally more.  

    Like Robert was saying also, if there aren't comparable sales it's going to be hard for an appraisal and realtor to confidently handle these.  

     I would say that this threshold is $150k a door. I know a guy who had a 4 unit in weinland park in columbus he was trying to sell for close to 400k as a 4 family forever. he converted them to condos and sold them for 150k a door (600k exit). i'm sure it made sense for him. i think you can make sense of it if you have 4 units but if it's a duplex i would agree has to be 200k per door or even 225k. we are doing a condo project right now where the purchase and rehab is all in 285k and exit is 235k per door. 

    [email protected]786-494-6766
    Section 8 Launch52 Reviews
    WebsiteView Page
    1Reply
  • Rick M.
    Rental Property Investor · Fort Lauderdale, FL · Member since 2017 · 151 posts · 94 votes
    7y

    I absolutely HATE when owners take a cashflowing multifamily property and turn it into condos. This is taking a property that could cashflow for someone else down the road and parting it out artificially raising prices on all other properties in the area, the Manhattan Syndrome. When someone does this they are ultimately contributing to anyone in further generations NOT cashflowing in that market and soon only able to rely on appreciation to make any money in said market. In my experience it’s easier for a owner to turn a multifamily into a single-family property/condo then going in the other direction. Now if the building has amenities such as a pool, sauna and workout room then you are actually in a condominium complex and a different animal entirely.

    I’ve had a few deals go south because of a greedy seller and the lure of the condo-cashout, attempting to sell out for more money than the property is worth. Soon every multifamily owner does this, or at least tries, and all the multifamilies are extinct like the once almighty T-Rex. Eventually the parted out multifamily sat overpriced forever and more often than not one person buys into the “Condo” and makes nixing the condo idea altogether irreversible.

    1Reply
  • Dell Schlabach
    Investor · Canton-Akron, OH · Member since 2012 · 917 posts · 477 votes
    4y

    Hello,

    Found your post when I was doing a search for condo conversion columbus ohio. 

    I funded/partnered on a deal in columbus.

    251 253 miami ave columbus ohio

    Ready to list my oartner seems to have gone awol,and confo conversion paperwork was never done.

    Any advise on the process and or an attorney to complete the process as zoon as possible?

    2Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    4y
    Quote from @Dell Schlabach:

    Hello,

    Found your post when I was doing a search for condo conversion columbus ohio. 

    I funded/partnered on a deal in columbus.

    251 253 miami ave columbus ohio

    Ready to list my oartner seems to have gone awol,and confo conversion paperwork was never done.

    Any advise on the process and or an attorney to complete the process as zoon as possible?


    I can send you a list of laywers here in Columbus, Ohio.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    0Reply
  • Susan Tan
    Rental Property Investor · Houston, TX · Member since 2019 · 212 posts · 149 votes
    1y

    I’m reaching out regarding a potential condo conversion project involving a four-unit (or four-plex) property in Cincinnati, Ohio. My goal is to convert the existing structure into four separate condominiums, each individually titled and sellable.

    I would appreciate the opportunity to speak with someone  here about the feasibility of such a project, including any zoning or permitting considerations specific to Cincy, OH. Additionally, if you have any referrals to a knowledgeable real estate attorney or title company familiar with condo conversions in Hamilton County, I’d be very grateful for the introduction.

    1Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    1y
    Quote from @Matthew Rosebaugh:

    I have seen a LOT of multi-families split into condos throughout Old Towne East, German Village, Merion Village, etc. Has anyone been through this process or have any advice? 


    Condo conversion can be a complex process, and I would advise hiring a reputable attorney. Happy to share my go-to contacts

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free