Townhome Conversion - Indianapolis

[Evan Manship]

Have a very interesting scenario. My brother and I co-own a 4-unit building that we had originally planned to rehab through 203k financing (the property is fresh out of 1970 décor, built in 1910).

However, we have since decided that it may make more sense to pair with an investor who will front the cash to rehab the units, separate the 4 of them, and sell them as townhomes. The rehab quote we have received from our original contractor was about $35k per unit to renovate with low-medium grade touches. However, a local developer and flipper whom is a personal mentor of mine has said that his crew could complete the job for around $25k per unit. The investor is standing by on this joint venture deal.

Has anyone here gone through the townhome/condo conversion and attempted to sell them individually? My project manager (mentor above) understands the ins and outs of legal and zoning issues, but more along the lines of the investment itself -- what advice would you offer?