Are you intent on flipping California property? If so, you are in luck, as condo conversions are picking up again. Real estate investors are using this strategy, that was popular years ago, to find and flip properties throughout the Sunshine State.
Condo conversions were an extremely hot commodity around 2006, but many stalled when the housing bubble burst. Since then, however, condo conversions have become a subject of incredible controversy. Some high profile investors and musicians proceeded to clear buildings to convert back to rentals, potentially removing families from their homes.
With little REO inventory left in most regions of the country, the multifamily housing market has become one of the hottest sectors over the last seven years as well.
Now, as the real estate market continues on the path to recovery, many apartment buildings are becoming condo conversions again. San Francisco Bay area is leading the trend, with Miami, San Diego and other traditional hot spots not far behind.
This could result in high yields for those in the real estate investing industry. Furthermore, it could boost returns for multifamily property owners. Condo conversions could potentially drive a new boom in the multifamily sector. With home builders recently turning more focus toward building this type of property, there could be a healthy amount of inventory coming to the market to help fuel price growth.
If you are interested in this real estate investing niche, make sure you do your homework and know your local laws. Consider who you might have to offer units to first, what association documents and legal help will be needed and the best price point for flipping the property.
Conversely, with this trend taking more rental units out of the market, it is creating opportunities for buy and hold investors to raise rents and maximize profits.
