Converting a 2 Family to Coop/Condo vs Straight Investment?

Hi all – I hope the Brownstoner community can provide some insight on the following scenario. I currently rent the top floor of a brownstone from my uncle. My unit, while livable, needs an update – both cosmetically and mechanically (electrical and plumbing upgrades). In an effort to give me an opportunity to invest in my home (and manage the renovation process), my uncle floated the idea of converting the legal 2 family house into a coop or condo, where I’d essentially purchase the requisite number of units/shares for my floor. Has anyone here ever tried to convert a legal 2 family to a coop or condo? Theoretically, this seems doable but what are the pitfalls?Alternatively, we’d also consider “straight” investment. Again, has anyone gone this route? We welcome any feedback, suggestions and recommendations for real estate attorneys. Thanks!

hea

in Home Buying 11 years and 1 month ago

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brucef | 11 years and 1 month ago

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Forget coop or condo as a feasible path. The creation of the Attorney General package can easily top 75K, which when split many ways isn’t a big deal, but split two ways is a budget buster. You should price out just the cost of getting plans approved for the upgrades you mention. Those expenses, plus the cost of finally doing the work, would have to be added to the project cost. I would recommend going “halfies”.