Flipping multi-units / condo converting

[Jauffrey Golinski]

I understand that most flippers are involved into flipping single family homes.
I was wondering if any of you BP members were involved into flipping multi-units (> 5 units) on a regular basis.

Here I would distinguish 2 processes:

- Flipping the multi-unit as a multi-unit
Meaning buying mismanaged properties and improving the NOI or vacant properties/rehab/rent
- Condo- converting the multi-unit and selling condos.
I guess the condo conversion process is definitely a barrier here especially from a legal point of view and because of the delays involved. I know that this process is very specific to one city from another and that in some cities, it is quite tricky (the lottery in San Fransisco and the average 7 years to obtain condo conversion makes it quite impossible there).

So anyone flipping multi-units or condo converting multi-units, please speak up and tell us about the most challenging issues you’re facing on this niche market.

Thanks for any replies. Jauffrey

PS. This is my first post on BP so my self-esteem and I hope we will get answers from you BP members, even if the subject is quite specific.

[Don Konipol]

The short of it is that in flipping commercial property you have much less competition than in flipping houses. However, you need far greater knowledge, information on value is much harder to arrive at, and you probably need a good sized bank account to be taken seriously in the commercial investing world (at least for quality projects).
I have "flipped" some commercial properties successfully, but in each case except one I did take ownership of the property for from 30 - 75 days. The properties I successfully fliped include a 10 unit apartment house, raw land, two automotive repair facilities, and a retail store front. Unfortunately, I planned on flipping a showroom/warehouse combination about 6 years ago. I took ownership at what I thought was a crazy low price, turned down an immediate $10,000 profit because I thought I could do much better. After spending $35K to remodel and repair, spending $25K on taxes and insurance and spending 2 years unable to find a buyer or renter, I sold to the original offerer at the original offered price, now a $50K LOSS for me. I tell you this not to scare you but to show that losses can and will occur sometimes, just like in any type of investing.