All Forum Posts by: Bryant Mortimer

Interested in Fix and Flips? Want to network with like minded individuals looking to expand their real estate knowledge? Join our upcoming Investor Meet-Up at Port City Brewing on April 5th. Follow the directions on the flyer to register. See you there!

Thanks Russell! I guess the DLCP would be my best bet for more information.

I am hoping someone has experience or insight into converting a two unit condo building to a legal duplex. I am familiar with the duplex to condo conversion but I am having a hard time finding any information the other way. 

A little background on the property, it was originally a rowhome that was converted into a two unit condo building. I purchased one unit in 2016 and then the second unit in 2021. I am getting ready to move out of the building entirely and would like to disband the condo association and have one tax id for the building as a whole. I am not 100% certain of/if there is any tax benefit(s) but given my plan to hold forever it seems like having everything under one umbrella makes the most sense in the long term. Any advice/thoughts/opinions are more than welcome. Thank you!   

@Sam Zawatsky

Time IN the market, not timing the market! No day trading in real estate.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $1,167,500
Cash invested: $234,846

This is hypothetical as I currently occupy (house hack) the lower unit, but the following is what I can expect once both units are fully leased in early 2023. Monthly cash flow doesn't represent variable expenses.

Long term buy, hold, and rent.

Original Purchase: Both units under ownership in July of 2021

-Purchase Price: $1,167,500

How I Financed Originally: Traditional Financing.

-$952,580 Loan Amount - 30 Year Fixed

-One unit is 2.625% and the other is 3% Interest Rate

-Monthly Payment: $3,642/month

-Appraised Value: $1,277,000

Projected total Rents: $6,000/month

Projected Cash Flow : $537/month (w/o variable expenses $1,138)

Resale Date: I do not plan on selling this 2 unit condo as it will be a dividend income producing asset for perpetuity. Ideally I would like to have unit #2 paid off in full within 8-10 years which should yield upwards of $3,000 a month while potentially utilizing a cash out refi on the lower unit to help fund additional real estate purchases.

-Current Loan Amount: $863,140

Investment Info:

Condo buy & hold investment.

Purchase price: $692,500
Cash invested: $55,377

Long term buy, hold, and rent.

Original Purchase: July 30, 2021

-Purchase Price: $692,500 (net $677,500)

-Seller Credit: $15,000

-Closing Costs: $24,065

How I Financed Originally: Traditional Financing.

-5% Down Conventional Financing ($34,625)

-$657,875 Loan Amount - 30 Year Fixed

-3% Interest Rate

-Monthly Payment: $2,774/month

-Appraised Value: $712,000

Current Rents: $1,200 (A friend occupies the 2nd room. The room is currently under rented at $1200)

I moved into this unit after securing a long term (16 month) renter for the upper unit. Ideally I would have continued to live in the upper unit and rent the lower unit, but due to putting less than 20% down I was required to occupy the lower unit as my primary residence to avoid mortgage fraud. After a year in place I am now looking to move and rent both units in the building. Next, I will breakdown the building as a whole.

Resale Date: I do not plan on selling this unit

-Current Loan Amount: $644,140

What made you interested in investing in this type of deal?

Took the opportunity to purchase the unit which gave me the entire building, including power over the Condo Association.

How did you find this deal and how did you negotiate it?

Purchased off market.

How did you finance this deal?

Traditional Financing

How did you add value to the deal?

As a Realtor I reaped the benefits of purchasing a property as a licensed agent.

Lessons learned? Challenges?

Water for a 2 unit building can really add up.

Investment Info:

Condo buy & hold investment.

Purchase price: $692,500
Cash invested: $55,377

Long term buy, hold, and rent.

Original Purchase: July 30, 2021

-Purchase Price: $692,500 (net $677,500)

-Seller Credit: $15,000

-Closing Costs: $24,065

How I Financed Originally: Traditional Financing.

-5% Down Conventional Financing ($34,625)

-$657,875 Loan Amount - 30 Year Fixed

-3% Interest Rate

-Monthly Payment: $2,774/month

-Appraised Value: $712,000

Current Rents: $1,200 (A friend occupies the 2nd room. The room is currently under rented at $1200)

I moved into this unit after securing a long term (16 month) renter for the upper unit. Ideally I would have continued to live in the upper unit and rent the lower unit, but due to putting less than 20% down I was required to occupy the lower unit as my primary residence to avoid mortgage fraud. After a year in place I am now looking to move and rent both units in the building. Next, I will breakdown the building as a whole.

Resale Date: I do not plan on selling this unit

-Current Loan Amount: $644,140

What made you interested in investing in this type of deal?

Took the opportunity to purchase the unit which gave me the entire building, including power over the Condo Association.

How did you find this deal and how did you negotiate it?

Purchased off market.

How did you finance this deal?

Traditional Financing

How did you add value to the deal?

As a Realtor I reaped the benefits of purchasing a property as a licensed agent.

Lessons learned? Challenges?

Water for a 2 unit building can really add up.

@Nick Shri thanks for the read! Condo is in Petworth, DC. Two unit converted Rowhome. Unique in that it's inverted meaning the 1br/1.5ba with private rooftop is on the top and the 2br 2.5ba is on the main and bottom floor. Each unit comes with off street parking.

@Dmitriy Fomichenko thanks for reading!

Investment Info:

Condo buy & hold investment in Washington.

Purchase price: $475,000
Cash invested: $174,863

Long term buy, hold, and rent.

Original Purchase: June 16, 2016

-Purchase Price: $475,000

-Closing Costs: 16,096

Total All In Cost: $174,800

How I Financed Originally: Traditional Financing.

-38% Down Conventional Financing ($174,863)

-$300,000 Loan Amount - 30 Year Fixed

-3.75% Interest Rate

-Monthly Payment: $1,389/month

Refinance Period:

-Refinanced after 5 years due to rates lower by 1%

New Loan: Jan 2021

-Appraised Value: $565,000

-New Loan: $223,250

-Closing Costs: $4,490

-2.625% Interest Rate - 30 Year Fixed

-New Payment: $897/month

Six months after the completion of the refi I had the opportunity to purchase, which I did, the lower unit of the 2 unit condo building. I'll break down that purchase in the next installment.

Current Rents: $2,325/month

Current Cash Flow After Refi: $453/month (w/o variable expenses $778)

Resale Date: I do not plan on selling this unit as it will be a dividend income producing asset for perpetuity. Ideally I would like to have this property paid in full within 8-10 years.

-Sale Price: N/A

-Current Loan Amount: $216,186

.