Converting duplex to condos - challenges with lenders?

[Rob Saunders]

Hi,

We have a large duplex (2100+ sqft each unit) in a great in town location surrounded by large SFR. The size of the units isn't really reflected in it's rental value as most renters looking for this kind of sqft want a SFR. We were moving down the path of converting into condos but were advised that there can be challenges securing a loan against a condo when the complex is 4 or less units. I haven't ever heard this so wanted to see whether anyone else has any experience they can share. The building is located in Pierce County, Washington. Thanks in advance. Rob