Pros and cons turning a multi family into tenant in common in SF

[Ben Lin]

Have you had experience with converting multi family (triplex or fourplex) in San Fransisco into Tenant In Common and sell each unit individually? Did you make money? Thanks for sharing. 

[Matt Devincenzo]

@Dustin Allen a TIC is a common CA work around to a condo conversion. Multiple court cases have determined that a TIC doesn't create a subdivision and therefor is not subject to the State Subdivision Map Act, and can be done without State/Local oversight. There are actually fractional lenders that specialize in these set-ups largely in SF and some in LA as well. The values tend to be a bit lower than a condo, but another common process is to convert a TIC to a condo to realize that additional value.