Yes as others have stated, they can convert easier if they have a clean history. Remember if you do this it is not justed based on the equivelant condo price and take a little off. You must consider also the costs of completing the conversion and what the city may require you to do to rectify any items they feel are unsafe or dont meet code or items that may have been done without permits.
This can be a great way to get into the market but you should talk to someone face to face to go over all the comlex things that can make something that looks a good deal into a nightmare.
The building also needs to pass specific inspections to convert, so if you buy one with most of the required work already done will save you some money, time and headaches later on.
Since you would be buying with a partner the other consideration that is different is how you split up the building and expenses. For example, do you share the yard, roof rights, the garage, storage, etc? Just making those decisions can test a partnership.
How you finance the property now, and how you finance it once it is converted to condos also needs to be discussed. Overall, the partnership you would be entering, and your entry and exit strategies may be what is most different from condos or homes, and probably the most important too.
'Two unit properties in San Francisco are special in San Francisco because
if they have a clean eviction history they can be condo converted after 1 yr of
owner occupancy of both units.
But it can be complicated so you need someone who knows this type of
property. Also, keep in mind that it can take 1-2 years to convert, and that there is
additional money required to get up to code as a condo. Yes, the sellers
of these properties usually anticipate the buyers plans to convert and
price it accordingly, but they should be cheaper than if condos else why
My broker and I have had a lot of experience buying and selling two units, both
for ourselves and clients. Contact info below for a no-strings expert consultation.
Owners of two unit buildings in which one unit is tenant occupied and all three and four unit buildings must enter the lottery. Only 200 units per year at this time are allowed to convert into condos and there are thousands of entries to win this lottery. It's for this reason that vacant two unit buildings will have a much higher market value than similar sized vacant units in a three unit building.
A partner and I were lucky enough to win the lottery and convert a 3 unit building in SOMA. I have over twenty years of experience in helping buyers and sellers in San Francisco. My goal is to provide information and work diligently on behalf of my clients to help them achieve their goals. Please contact me for more information on how I can help you with your interest in owning San Francisco Real Estate.
These and many other important factors are excellent reasons why a knowledgeable agent can help you find the right property. Feel free to contact me if you'd like to know more. Best of luck-