Metro Boston Converting to Fam to Condos

[Chris Conde]

Hi all, I may have an opportunity to buy a two family in the Cambridge Somerville area. estimated 800-900k. I don't think the rents would support it however a lot a people in the area have converted these types of homes to individual condos. each condo selling for over 500k. My question is has anyone here done a conversion like this in this area? where there any hidden costs to think of? Was the process straight forward? chris

[John Pauler]

Hi @Chris Conde - I had never done a conversion before and then I converted both of my Somerville 2Fs to condos over the past 12 months. Here's what I had to do. Some of the steps are specific to Somerville (statement of condition, separate water metering).

• Give tenants 12 months notice, 24 months if they are disabled or elderly
• Create your architectural documents (unit floor plans, site plan)
• Create your standard condo docs with an attorney (master deed, declaration of trust)
• Have a different architect come and provide a 'Statement of Condition' (this is the hardest thing to find - most architects will not be willing to take a small job like this - this is also only required in Somerville as far as I know)
• Complete an application to the condo board (meets once a month)
• Attend the condo board approval meeting, or have your attorney attend
• Submit $500 fee per unit to the town
• Prior to closing, separate all utilities with separate meters (electric, gas/oil, even water in Somerville)

All-in costs for 2 unit conversion...anywhere from $12k to $18k.

It's not the easiest thing in the world, but if you're organized and motivated to manage the project, it can be worth it. 

Hope that helps. Happy to answer more questions here / via phone / over a beer. 

Cheers! 

John