Thoughts on converting a duplex units into condominium

Thoughts on converting a duplex units into condominium

Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes

Just and idea and not sure if this is possible or worth the effort:

Let's say I own a duplex, two one bedroom units. Let's also say that in my market, if one of my units was a condo, it would sell for roughly the balance left on my mortgage. If I were to sell it I would pay off my mortgage and own the remaining unit free and clear.

What are the communities thoughts on something like this? My cashflow would increase, but then again I would have to pay into an HOA to maintain the roof and exterior. Worth it? Even if my after everything profit stays about the same, I would have one unit to manage instead of two (and probably less CapEx to pay for out of pocket).

Do RE Entrepreneurs do this sort of thing?

0Reply
29 views

4 Replies

Jump to latestLatest
  • Rental Property Investor · Fayetteville, NC · Member since 2014 · 884 posts · 670 votes
    11y

    @Max T. - Why would you be required to convert them to condos? Just sell one side of the duplex. Am I missing something?

    That being said, I would not sell one side of a duplex. You are going to lose control of your asset if an owner moves in that does not take care of his part of the property.

  • Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    11y

    @Justin TahilramaniI didn't know you could sell part of one property that has not been subdivided.

    Who would pay property taxes? Water bill (not submetered in philly)? Roof maintenance?

  • Rental Property Investor · Fayetteville, NC · Member since 2014 · 884 posts · 670 votes
    11y

    @Max T.  I'm tracking now - I assumed that each side had an individual parcel ID.

  • Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    11y

    @Justin TahilramaniI think you are right in some places but in Philly duplex just means one property with two legally rented units (all utilities separate except water).

Join the conversationCreate a free account to reply, vote on answers and follow this thread.