Converting Rent stabilized units in NYC to free market units

[Samyak Rai]

Hello all,

I am currently analyzing a 9-unit MF in Manhattan. 8 out of the 9 units are rent stabilized, which really affects my cashflow. I know you can convert RS to FM by giving in writing, a note stating that you will be renewing your tenants lease, at least 60 days before the lease naturally comes to an end.

So I have two choices here, either buy at a lower price right now, accounting for actual income, and then later convert some of the RS units into FM, but NYC law states that some percentage of your units must be RS. The only way I see to get around this is convert the MF to designate them as 'condos', which do not need a percentage of RS units. 

I would really appreciate it if someone could help me regarding what the process of converting apartments to condos looks like, or if there is any other way to achieve the higher cashflow I will get if all the 9 units are free market. 

Best,

Samyak