4 Plex Condo Conversion

[Luke_Frerichs]

Hello,

I am new to the whole world of Condo Conversion and would like to get my feet wet, im considering doing a conversion with a 4 plex. My question stems from the fact that all 4 units are on one meter. Since that is the case would the cost of installing seperate meters for each unit become a potential deal breaker for the property im considering? What sort of things could i expect?

much thanks in advance
Luke

 

[NorthernAlex]

Luke:

Have a look at https://www.realestateinvestingincanada.com...home-study.aspx which will give you a overview what needs to be done.

As the mentioned fourplex does not have separate meter or hydro, water, gas aso. I think it will be quite expensive to convert and not worth the effort, BUT I am just beginning in this real estate journey and my opinion is not blessed of tons of experience.

Anyhow, good luck.

 

[Thomas Beyer]

QUOTE (Luke_Frerichs @ Apr 7 2009, 04:22 PM) Hello,

I am new to the whole world of Condo Conversion and would like to get my feet wet, im considering doing a conversion with a 4 plex. My question stems from the fact that all 4 units are on one meter. Since that is the case would the cost of installing seperate meters for each unit become a potential deal breaker for the property im considering? What sort of things could i expect?

much thanks in advance
Luke

some important questions:

what province ?

what city ?

size of unit ?

value per unit
a) as a 4-plex ?
b) as a condo (based on comparable units)

rent per unit ?

the city MAY require a meter per unit .. or they may not ! Did you ask the city planner ?

A city approval is a VERY big IF to a for sure "no" depending on city and province !!

IF the city and province allows a conversion it is VERY EASY:
a) get a survey (maybe $6,000)
b) apply for 4 titles
c) do work city may require, such as 4 meters instead of one

once approved and you want to sell ONE:
d) get a mortgage that allows sale of one unit (i.e. a partially dischargable mortgage or 4 small ones )
e) get a reserve fund or party-wall study
f) seed reserve fund
g) get a condo corporation or party-wall agreement
h) SELL a unit
i) celebrate !
j) repeat
k) go to a nice & sunny place to celebrate the 2nd sale and send a post-card to me and REIN members off proceeds

 

[Luke_Frerichs]

Thanks, Alex and Thomas
For your response we have owned the 4 plex for a few years and were just considering a conversion. I live in Medicine Hat and the city is conversion friendly. I was talking to the planner a few days back and the only question i did not ask were about if each unit must be on a seperate meter.. Today i learned the answer is Yes, unfourtunately, im still crunching the numbers but it looks as if the cost may break the deal.. I have been studying the course Apartment Conversion Secrets for a few weeks now and I am just itching to implement somthing.. Perhaps even help anthother landlord convert his APT into condo`s for a small fee..

Cheers
Luke