If it hasn’t happened in your area yet it probably will at some point. Buying 2-4 unit rentals and converting them to condominiums. These so-called “mini-conversions” have been around for several years to some degree and they can become a popular option for real estate investors. It takes somecondo conversions preparation ahead of time and there is some legal work to be done but it just might be an excellent opportunity. Why convert a 2-4 unit to a condo?

 A 2-4 unit, in conventional parlance is a resident with separate living areas sharing common walls. Think of a duplex only doubling the concept. Four separate renters living on the same lot in their own space. Landlords particularly like these investments as the cash flow each month can be greater compared to a single family home. The possible downside is there are so few of them. Community building codes can allow for a certain percentage of multi-family properties, including apartment buildings, but a four-unit prospect isn’t as common as say an array of duplexes. But once they’re found, they can be an attractive investment. But why the condo conversion?

Once the legal work has been completed and the four-unit home is now four separate addresses with each unit being owned independently. With such a conversion there may be four different owners. One of the primary reasons a mini-conversion makes sense is the ability to sell an individual unit instead of all four at once and investors can find that selling four separately can result in greater profit. The individual units add up to more than what the entire four-unit home would sell as a fourplex. Again, there’s no shortage of paperwork that needs to be completed and there may be some issues regarding similar properties in the area. But once the first project is converted, others will soon follow.