Condo-izing a 3 family

[Nicholas Stevens]

Hey guys - I bought a 3-family last October FHA, 3.5% down payment and was recently kicking around the idea of condo-izing the property and selling the best unit in the property that is completely renovated. I obviously owe quite a bit on the mortgage still, is there any limitations to condo-izing before having 20% equity or anything like that? I owe about $395k and looks like 2 br condo's are going for anywhere from $175k-230k so it seems like it would make sense if it's not too costly to do? I could pay off much of my loan and get out of the PMI ($400/month) and provide capital for other real estate as well. That's what I'm considering..I'd obviously be losing the income from that unit..