SFH to Convert to 2-Unit Condo Building

[Kimberly L.]

Hi, I am new to BiggerPockets. I already have one investment property in my pocket. 

It was a very hard journey for me at the beginning because I was definitely not prepared for a lot of things but my first property and I survived unscathed. Fast forward, I forced myself to learn how to do a bit of everything in regards to construction from demolition, framing, basic plumbing and electric, drywall, flooring, tiling for kitchen and bathroom, to the finishing touches. All because I learned my lesson the hard way; knowledge is everything. I definitely developed a deep appreciation for construction done right for it translates into beautiful results design result, etc.

Plus, I am deaf in both ears. Communication barrier is something I struggle with on a daily basis. I just always push myself to find a way to get around it.

Now, I am considering converting a SFH into 2-Unit condo building. Most likely to sell for profits than to keep as rental properties.

I found a SFH for $600k. I want to ask around here if there are people who have done this before. What's the construction budget you had for this kind of condo conversion project? How much did you actually spend / pour into the project? What did you sell these two units? In your experience, was it all worth it?

I definitely know what to do if I were to keep it a SFH, but it's in RF-1 zone, so I want to consider condo conversion and make sure I am prepared for it as well.

Thank you in advance!

[Eric Teran]

@Kimberly L. knowledge through experience is the best way to learn. I know you won't make the same mistakes again. I've also learned if you pay a little more upfront for detailed plans and estimates you will save a lot during construction. Better yet, you will stay within your budget. I have another client who is a developer who is also deaf. We are always in communication to see which properties make sense for him to invest in. I can put you two in contact if you would like. 

There is a lot that goes into separating a SFH into two-dwelling units. Construction costs can range from $100k to $400k. It depends on what you want to do. Some clients only separate the basement with a simple remodel. Other projects involve adding a 3rd-story, making each unit 2 stories, adding more SF at the back, and so on. At that point, it is basically all new. The location will tell you how much you can sell each condo for and at what size. You have to work backward. Once you have that selling price we can discuss how to convert the SFH to two-dwelling units. I suggest working with a realtor that understands these price points.

The big difference in costs are in the following areas; separate utilities for mechanical, electrical, and plumbing, most likely the need to upsize the water meter and meter lateral (Will need a DC Water and DDOT permit), fireproofing between units, and a sprinkler system in one or both units. In some RF-1 zones they may be historic and you will need to have HPRB (Historic Preservation Review Board) or BZA (Board of Zoning Adjustments) review the plans.