Years ago, I bought a duplex in center city Philadelphia. As long as I have owned the building, both units have been used as residential but the property is zoned commercial.
Lately, the street on which the property is located, has been undergoing a bit of a revitalization. Other buildings on the block/street, which in years past had also been used for residential, are now being converted back for commercial purposes. A coffee shop has moved in, a few art galleries and one or two boutiques.
One of the books I am reading this month is 'The Complete Guide to Buying and Selling Apartment Buildings' (thanks SteveO) - so, of course, this has me thinking about how I might improve the NOI of my property.
My question is what things do I need to consider in evaluating the best use of this property? My husband has experience in construction and estimates that the cost to convert the unit would be 25-30k. So my logic tells me that as long as I can increase the value of the property for more than that amount, it is a smart move? The end goal is to sell the property and carry forward the gains into a larger commercial project.
The first floor unit is 800 sq ft and rents for $900. I have a call into my appraiser to find out what the average price per sq ft is for both lease and sale of commercial space in this area.
Any suggestions as to other things I should consider/research? My experience is in residential real estate..... so just want to make sure I am not missing anything here.
Thanks.
Lately, the street on which the property is located, has been undergoing a bit of a revitalization. Other buildings on the block/street, which in years past had also been used for residential, are now being converted back for commercial purposes. A coffee shop has moved in, a few art galleries and one or two boutiques.
One of the books I am reading this month is 'The Complete Guide to Buying and Selling Apartment Buildings' (thanks SteveO) - so, of course, this has me thinking about how I might improve the NOI of my property.
My question is what things do I need to consider in evaluating the best use of this property? My husband has experience in construction and estimates that the cost to convert the unit would be 25-30k. So my logic tells me that as long as I can increase the value of the property for more than that amount, it is a smart move? The end goal is to sell the property and carry forward the gains into a larger commercial project.
The first floor unit is 800 sq ft and rents for $900. I have a call into my appraiser to find out what the average price per sq ft is for both lease and sale of commercial space in this area.
Any suggestions as to other things I should consider/research? My experience is in residential real estate..... so just want to make sure I am not missing anything here.
Thanks.
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