Rental Conversion
I am currently looking at an 8 unit fully rented apt building in New Jersey. I would like to consider turning into condo's shortly after purchase, but I have never done this prior.
Can anyone offer their experience in this type of conversion?
Thanks, Flyboy
From what I have heard the conversion will legally cost you to have condo documents drawn up and approved. Also, I think there may be atime frame that the property is dedicated to section 8. Check out if you can elect out of the program after closing or if there is x number of years it must remain section8.
Thanks BethE! The use is currently rental and non section eight, but good point and I will add this to my list of concerns.
Flyboy,
I live in Nj. My attorney told me she knows an atty that has done many conversion. Email me at ****Must Reach Freshman Investor status before posting URL's***dgers@mail.com and I will give you her contact.
Matt
I am not in New Jersey so some of what i say may not apply, but am an urban planner so where I work, condos (by the subdivision map act) require a survel and a licensed enginner to draw up a tentative tract map. For 4 lots (or units where the common area is divided) it is calleda parcel map. Since tract maps are entitledment processees (they required some sort of local noticing and public hearing) you will be required to meet (conditions of approval) certain development standards. usually they are higher than simple appartments such as parking, open space and landscaping. for existing apartments to be converted it depends on the type of apartment - at least out here- if it's pretty substandard in terms of amenities they have to make some improvments. It takes up to 2 years before the process is complete. What a lot of developers do, to spend it up (if your local jurisdiction doesnt have an expediting fee) is building apartmenrs with higher condo stardards to get the process going and pull permits.
I have taken over several older apartment complexes and converted to condo's. After getting all the tenants out, I go in and gut the building putting in new electrical and plumbing. After all this is accomplished we shell in each unit. We allow the buyer to customize the unit to their taste. By doing this we usually net an extra $5,000.00 per unit.