Sometimes a property lands on your plate that’s in the right place but no longer fits the surrounding landscape. The neighborhood or overall community contributes to the success of any investment property but the structure itself is either too old, way out of date or simply sticks out like a sore apartment or condothumb. That can often be the case with an older apartment building or warehouse.

Urban neighborhoods tend to attract the trendy among us and that calls for an updated version of property. Is there an apartment building that you think could use some updating? Or even torn down to start anew?

Urban apartments close to work, dining and entertainment are a magnet for those enjoy the downtown lifestyle. But buying and managing an apartment building is quite an undertaking. Apartment buildings are expensive compared to other forms of rental properties. Yet that doesn’t mean an apartment building must stay an apartment building. Have you considered rehabilitating the complex then turning it into a condo project?

When converting an apartment building or dividing up warehouse space for individual units, you open up the buyer’s market a hundred-fold. You’ll find buyers for a $200,000 condominium or loft but there won’t be as many potential purchasers for a $10 million dollar multifamily project. Having individual units can mean more profit per square foot with the ability to sell what you want when you want. Selling an entire building as one transaction will put a lot of profit into your account all at once but the selling process is extended as just the financing of a property may take months for investors to line up.

Yet converting an apartment to a condo allows you to piecemeal the project and keep as few or as many as you’d like for either rental income or selling the unit. When you see an apartment building or warehouse, ask yourself if that real estate would enjoy life better as a condo.