Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 6 years ago, 07/06/2018
HELP! Buying both units in a 2 sided condo REHAB troubleshooting
Ok guys so this is a weird one and my research has so far been pretty inconclusive (although in its infancy).
So i found a 2 unit condominium near my target area. One is currently for sale and the inside seems to be in great shape via mls pictures, although the listing recently expired. The outside seems to need at least a decent amount of cosmetic work, likely a new roof, etc. The other unit has vacancy signs posted all over the doors with code violations cited (mostly relating to the yard). I did some skiptracing and found out that the owner of the "vacant" side has died. I dont know what shape the inside of the vacant unit is in, but judging by the outside of the whole building Im guessing it will need some work.
My goal is the ol' live in one rent the other, but trying to figure out the play I will need to make. Im wondering if i can do a 203k for the side for sale and get some hard money to BRRRR for the other sides purchase and rehab and try to combine the allotted rehab costs to to handle the outside work on the whole unit?
Also, would there be any perks to rezone as a duplex? Is that even possible? Would that effect taxes or insurance to wrap them? Or would it just make sense to factor in my 10% Cap/Repairs/Vacancy/Management for the total rent of the building (planning on renting it from myself) instead of treating it like 2 seperate condos. My only reasoning for renting it from myself and paying myself "management"is if it is cashflowing I may want to rent out both sides eventually, although I do love the property and could see myself there long-term.
If i did a 203k for the one side and BRRRR'd the other side would I be able to refinance the whole thing into one mortgage once the rehab is complete? The outside work would HAVE to build equity in both sides, so does it matter if its owned as 2 condos or a duplex?
I just see a property with 2 forms of distress and think I may be able to get a solid deal out of it, however I want to see what is possible and what is smart. Sorry if this post is a little scatter brained, hopefully someone can make some sense of the direction im trying to go in.