Tennessee Condo Conversion?

[Daniel Martin]

Hey all - to start here is some context. 

I co-own a 17 Unit apartment complex about 40 min outside of Nashville. Some facts:

17 units total, all attached, Square feet: 952/unit, 16 units are 2 bedrooms, 1.5 bathrooms. 1 unit is 2 bedrooms, 1 bathroom, Every unit is a 2 story. Each unit rents between $800-$900

We've been thinking about going through a condo conversion as an exit strategy in this market. In the city we're in there are no $100k-$120k place for sale so, we're thinking about selling them to new home buyers or turn key landlords. 

Has anyone gone through a condo conversion for something like this? I'm trying to get an idea on the total cost. I'm hearing that it could cost upwards of $15k-$20k in just legal, HOA, bank fees. Thanks in advance for any help here!

[Steven Ellenbogen]

Hi Daniel, I haven't done a condo conversion myself, but I definitely plan to. In the Knoxville area. Your observation about the lack of condos around the $100 to $120k mark in Nashville is spot on, and I think true for most cities. I would be interested to keep up with your experiences if/when you move toward doing the condo conversion. I think 15k in legal fees is well worth it, to completely enhance the exit from the property (probably get a whole lot more than selling to another rental investor). If your plans turn toward Knoxville I would be happy to scout for you and your partners, and potentially co-invest. I am a licensed GC as well as a realtor. All the best with your plans.