Multi-Family Conversion

[Account Closed]

Hi,

I am interested in a particular single house located in Boston, MA that has two floors with 7 bedrooms. For more info, here's the link:

http://www.redfin.com/MA/Dorchester-Center/61-Bowdoin-St-02124/home/9073768

Since the house has tremendous capacity, it would be a great candidate for expanding into a multi-family. What does this conversion process encompassed?

[Shaun Reilly]

First off why would you want to do that?

Single families are much more valuable in this market. The first thing you would do is probably reduce its market value by 10%. Then if you got the zoning change approved you will have to make 2 functional units which at a minimum will involve walling off separate sides, adding at least one exterior access point, and a new kitchen in one of them. The 2nd "full" bath looks like a 3/4 to me so if that is the case you will either have to upgrade that or take a hit on rent.

Why not just buy one of the available multi families in the area for $10-70K less and put that money into upgrading it if you want to have flashy modern units?