Potential Condo Association Deconversion in College Town

[Parth Patel]

Hello MF Investors, 

Thank you for reading this ridiculously long post and sharing your thoughts!

   I have come across a condo association that is VERY rundown (drugs and homeless) and not doing well at all, interestingly it is surrounded by multiple apartment complexes geared towards students. These surrounding apartment complexes are relatively new and quite expensive.

I was wondering if anyone has experience in buying a condo association and turning it back into an apartment complex or even cleaning it up. I have not got in touch with any owners for buying purposes as of now, I might be overthinking it but I just want to have more knowledge before talking to them. 

 I have however set an appointment as a potential tenant to see what the units look like in reality, tour the whole thing and also talk to the management and get a feeler. If this deal seems feasible, I will then follow up with other apartment complexes to compare and see why they are priced so high and what I can do to make the value better on the subject property.

I do not have any experience in MF investing, I have bought individual condo units in different associations as rental properties, but that is the extent of my knowledge for Condominiums. I realize this is worlds apart from what I am talking about in this post, simply letting you know I have a bit of R.E experience. 

Thru the basic research that I have done, there are 59 total units with the original buyer holding onto 13. It seems it was originally a apartment complex that was then turned into a condo association. 

Current individual ownership stands at:

    13- Original Buyer (Converter) 

 7- Single Investor

16- 7 owners who own multiple properties

23- 23 owners who own 1 each. 

There are also 3 properties currently for sale.

I'm not sure if that is relevant at the moment, but put it up anyways as that is all the information I have so far. Apart from the pricing and dates sold info. 

This ridiculously long post just for this  - I'm trying to figure out the best step forward on crunching the numbers and seeing if there is actually any potential here. 

Once again, thank you for taking the time to read through this and helping a budding MF investor!