203K 4 unit => Condo Conversion in Washington DC

[Joshua Smith]

Hi all - I am about to close on a 4 unit in Washington DC. The ARV of this building will be ~$1M; however, if I convert the units to condos, each condo would be worth about $315K ($1.26M). Would be great to get that $260K equity boost obviously, while still living in one of the condos.

The project is a 203K and I understand that it's possible to do a condo conversion if you have an FHA loan:

https://portal.hud.gov/hudportal/documents/huddoc?...

My question to all of you FHA experts is: if my bank has no idea how to help me get approved for a condo conversion, who do I approach? HUD themselves? What does that process look like? Any thoughts/feedback would be incredibly useful.

Thanks!

[Russell Brazil]

Dont forget to include the cost of the conversion in your figures. DC charges 5% of the sales price as a condo conversion tax. Add in another $50k or more for cost of setting up the HOA, architectual drawings, title work etc.