Middle Housing: How Condominiumization Can Multiply Your Returns

[Tim Cornwell]

How Condominiumization Can Multiply Your Returns

"Washington is in the midst of an affordable housing and homelessness crisis."
— Washington State Department of Commerce, 2024–2029 Homeless Housing Strategic Plan

With House Bill 1110 opening the door to build middle housing (like duplexes, triplexes, and fourplexes, townhomes, cottages, etc), many investors and homeowners are asking:

“How do I maximize the value of this opportunity?”

The answer?
Condominiumization.
Turning one parcel with multiple units into individually owned homes that can be sold separately — just like condos.

🧱 What Is Condominiumization?

Condominiumization is the process of:

• Legally dividing a multi-unit property into individual ownership units

• Creating a condo map and HOA structure

• Selling each unit separately while retaining shared ownership of land or common areas

This isn’t new — but under Washington’s updated laws, it’s becoming far more relevant and profitable.

📈 Why This Strategy Works Now

Under House Bill 1110:

• You can build middle housing on a single lot (up to 6 units in many cases)

• But the resale value is limited if you can only sell the whole building to one buyer

Condominiumizing changes the game:

• Sell each unit to individual buyers

• Create affordable homeownership options for first-time buyers

• Unlock maximum value from one project

Example:
A fourplex that might sell for $850K as a whole could instead sell for $325K x 4 = $1.3M
More profit. More opportunity. More flexibility.

🧭 Who This Strategy Is For

✅ Builders
✅ Investors
✅ Homeowners who want to build and sell off a portion of their lot
✅ Families who want to share land across generations

This strategy works beautifully for:

• Urban infill lots

• Corner parcels

• Deep lots with alley access

• Redevelopment opportunities in high-demand zones

📋 What You’ll Need to Do It

To condo a project, you’ll need:

• A platting & condo attorney

• Survey & site plan

• A simple HOA agreement

• Marketing that attracts owner-occupants or mission-aligned buyers

💥 The Impact

Condominiumization isn't just about making more money.
It's about:

• Creating attainable ownership in a high-cost market

• Supporting gentle density that fits the neighborhood

• Helping Washington achieve its housing goals without high-rises or sprawl