Converting a duplex into single family...a good idea?

2 Replies

I’m evaluating an off market duplex. As a rental, the numbers are a little tight:

Price: 210k(haven’t negotiated yet but after first conversation I think she wouldn’t go much lower).

ARV: 230k

2/2 on both sides

No major repairs

Rents : 1k each side currently. Market rents probably support about 12 or 1300 per side

Property is in Texas so property taxes are high. 

Definitely not a home run once you factor in maintenance, vacancy, etc. 

However, the interesting thing is the house next door, which is a single family, sold for 365k. It is smaller, and was a 3/3. So I was curious...

How difficult would it be to convert to a large single family? With that price spread, I am thinking it could work as a flip. 

Has anyone tried this before? Is it even worth considering?

@Jacob Forbis - have your realtor pull you comps for the area on this property. That will give you a clearer picture of your potential ARV for a conversion into a SFR. Getting creative, I like it!

Even converting, cost wise, it may not be worth the effort if the property was not originally a SFH.

As a rental you will need to push rents to $1300 otherwise it is not a worth while investment. 

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here