Wow I wish my brother in law was on Trulia, he'd be the perfect one to answer this question. He's recently converted his 4-plex to condos. In short, he needed an attorney to write up CC&Râ€™s and then worked with the local municipality to change the zoning.
In hindsight, I think he learned a valuable lesson. It would have been better to change to a single family attached than condo; because when trying to sell a single family attached is easier to get financed by a buyer than a condo.
Hi Rona- This is just a cursory answer and thought- sight unseen. I was a builder for 10+ years in Mass.
I can assure you that a vinyl floor, or a wall covering, is not going to stop water seepage coming in from the walls or up from underneath the floor. If the water pressure is there, almost nothing can stop it from getting through the concrete, totally. The vinyl is just a superficial thing so that they can put carboard boxes down on the floor and not have the stuff inside them get ruined. Its good for that.
If it has a working sump pump with no pipe blockages, then it should be OK, as far as flooding and major damage. Is it in an area that often gets water in the basement? Knock on the door and ask a couple of the neighbors. They would probably tell you if it always floods when it rains a lot, etc.
If I can be of any help, please contact me. Thanks,