Appraising a 2 family Condominium

[J Grant]

I don't know yet if each unit can be sold separately or not.

Even if the owner combined into one legal ownership, in most cases, condo board has to approve renters. (unless this condo allows unlimited renting with no board approval). In that sense, it would differ from fee simple duplexes which usually is nto subject to as many regs and rules as condos.

 

[J Grant]

The entire 3 story building is one condo unit .
It is a legal 2 family condominium unit with a 1st floor that is being used as a walk-in unit.

Does the owner have to pass through or enter his second floor unit through the first floor, or is there an outside stair /access to second floor unit so he can enter privately?

What are other units in condo complex used for...are they rented etc? HOA restrictions on renting?

Sounds like a mess but if it is one legal ownership maybe could be done as an income property, on a 1025....but look into it as legally it is still a condo and Fannie etc have certain condo rules...like a 1073 with an income and expense statement treating it like an investment condo? I dunno at this point.

 

[J Grant]

Can either unit at present be sold separately? ( maybe I am dense but I am not sure that is fact and not assumed)

 

[DTB]

Of all the oddball assignments that I have seen on the forum over the years, why would you even continue to proceed on this one?

A. You're likely to make no money on the assignment.

B. You're sure to get boatloads of grief from the client, owner, association...basically anyone remotely involved with this property.

C. You'll become the expert on a one off property in Howard Beach, big deal. Again, no money to be made, not even future money.

Man, I'd run like my hair was on fire.

 

[J Grant]

Especially as this is a condo, u might receive big slap on wrist later for not using condo comps....if this mess is ever reviewed, which is likely. It sounds like a condo that is being rented out for income purposes. Was it the client's idea to put this on the 1025 form?

 

[realbiz]

I was trying to wait on the answers posted by JGrant before replying. I am not familiar with your neck of the woods, but we have many two unit condominiums along the South Bay coast (Redondo Beach, Manhattan Beach, etc,), some attached and some detached. These properties were built as condominiums only, with individual ownership. Believe it or not, some have inactive HOA's. The two owners just agree on exterior maintenance and split the complex insurance annually. If these are actually condominiums, here you would have to appraise as a condominium. Even if one owner bought both units, they have individual titles. Ownership does not change legal use, if you own both of the two unit condominiums the legal use does not change to a duplex.

 

[Valuation Guy]

Sorry for any confusion.
There is one deed for this entire property.

 

[hastalavista]

Sorry for any confusion.
There is one deed for this entire property.

You can see from the responses so far that what you have isn't common (at least not in any of our markets).

I will make a forecast that the owner-of-record must occupy one of the units.
If that is the case, I think you have an extremely difficult (but not impossible) assignment.
You effectively have an owner-user property that has some income-potential with the rental, and non-income but maybe contributory value from the non-permitted accessory unit.
Trying to differentiate the income and GRM associated with that is difficult. There just are not enough sales (and it doesn't work out the same as stand-alone income unit; like a condo that's rented. The stand-alone condo has the full bundle-of-rights; your rental condo does not have that same bundle-of-rights; the GRM for it is most likely going to be a lot lower).

Unless they want to pay me a fair fee (which would be $2k or more) and give me sufficient time (which would be 3-4 weeks), I'd pass.
You are probably a lot faster than I am. So maybe 2-weeks for you!

 

[Mike Kennedy]

Fighting Illegal Conversions:
A Comprehensive Guide for Communities Published by the
Office of the Queens Borough President, Helen M. Marshall

WHAT IS AN ILLEGAL CONVERSION?
An illegal conversion is the creation of one or more additional dwelling units within a home without first receiving the approval of, and permits from, the NYC Department of Buildings. Such conversions often involve the alteration or modification of an existing one- family or two-family home by adding an apartment in the basement or attic. Sometimes several dwelling units are added to a home to create an illegal rooming house.

IS EVERY APARTMENT ADDED TO A HOME ILLEGAL?
No. Depending upon the circumstances, it is sometimes permissible to
add an apartment to a home.

• First, the building must be in an area which is zoned to allow additional dwelling units.
• Second, the property lot and building size must meet the zoning requirements.
• Third, you must obtain a building permit from the NYC Department of Buildings to add the new dwelling unit.

IF I ALREADY HAVE AN ADDITIONAL DWELLING UNIT IN MY HOME, HOW DO I KNOW IF IT IS LEGAL?
If you added the apartment to your home without first getting a permit from the NYC Buildings Department, it is illegal, and you must either remove the apartment or seek to have it legalized. If the apartment already existed when you bought the home, you should check the Certificate of Occupancy for the building, or speak with a licensed architect or engineer.


Downloadable C.O.’s may be obtained from the Building Information System (BIS) on www.nyc.gov/buildings.


http://queensbp.org/content_web/housing/illegal_apts.shtml

 

[sandpiperapp]

I believe Arverne by the Sea in the Rockaways has similar units. They are condo units with two seperate living areas and both can be rented. List the accessory (3rd unit)as you would in a multi family. If the 3rd unit is above grade, I include it in the GLA, but do not attribute any value to it's income potential.