Duplex Conversion: A Step-by-Step Guide
Investing in real estate can be a smart way to build wealth over time. One strategy that is gaining popularity among investors is converting a single-family home into a duplex. In this video, we will guide you through the duplex conversion process, from selecting the right property to completing the renovation.
Step 1: Selecting the Right Property The first step is to find the right property. You should look for a property that is zoned R2A or higher, which allows for multi-unit residential use. The property should be located in a neighborhood with a median income that is not too low, as you want to avoid low-quality tenants. The age of the property should be 1958 or newer to ensure you have a ceiling clearance of six feet five inches under bulkheads. A bungalow or raised bungalow is an ideal candidate, and you should also look for at least three parking spaces and a square footage of at least 900 square feet.
Step 2: Purchasing the Property Once you have found the right property, the next step is to purchase it. You should aim for a closing period of at least 60 days, which gives you enough time to prepare for the renovation. You should also order a pre-order inspection to determine what needs to be done before you start the renovation.
Step 3: Renovating the Property The renovation process should start with framing, followed by inspections. There are six inspections you need to go through in the following order:
- Framing inspection
- Plumbing rough-in inspection
- Electrical Safety Authority inspection
- Drywall inspection
- Final plumbing inspection
- Final inspection
You should hire contractors to handle the renovation, and you should make sure they are licensed and insured.
Step 4: Renting Out the Units Once the renovation is complete, you can start renting out the units. You should make sure the units are up to code and have all the necessary permits. You should also screen potential tenants carefully to ensure you have high-quality tenants.
A Duplex conversion is an excellent investment strategy for anyone looking to build wealth over time. By following these steps, you can successfully convert a single-family home into a duplex and boost your cash flow on any given property.
Check out the video: https://www.youtube.com/watch?v=SfbkUwAUy8s