[realtygeek]

Sorry, this is my first thread and I realized I posted in the wrong Forum. Not sure how to move this post.

I'm hoping to get everyone's perspective on a challenge I'm faced with...

Background: I bought a 3 storey duplex (semi detached) a year ago with the intention of continuing to rent out the top floor apt while I lived on the main floor and basement. After being unnerved by the shared front door opening at all hours of the night I realized that having a tenant may not be the best thing. I've been now living in the house on my own, however as you can imagine 3 floors plus a basement is alot of house for one person! I've decided to sell in the spring.

Challenge: Will resale value increase if I convert the duplex into a single family house? It would involve renovating the second floor kitchen and bathroom into one large bathroom and closet...an undertaking I'm not too keen on. Or should I try to sell it as an income property?

Hopefully I've provided enough info. Thanks in advance for your input!

 

[cdr108]

perhaps you would feel more comfortable living on the 2nd + 3rd floors since the sound of an opening/closing door may not be as evident ?

since you live in s. riverdale, i think most realtors will say SFH are in more demand than duplexes.
however, that doesn't mean there isn't a demand for duplexes ...

it certainly will help a potential owner from being house poor with income unit.
i think alot depends on how the place is laid out, modern, # bedrooms and washrooms each unit currently has, etc.

 

[neuhaus]

I would keep it as a duplex.
It will cost a lot of money to convert it to a SFH, and you will attract buyers who are able to spend a little more than they wanted as the upper level apartment will generate rental income.
Have you thought about redoing your entry so that it is more insulated? I'm thinking a quality solid entry door with a soft closure, making the stairs more solid (replacing with thicker boards that is glued and screwed) and more sound insulation, perhaps using industrial carpeting to soften footsteps, etc.

 

[GraceCondos]

Great question. I'm am a realtor and work your area a lot (have offices in the beach & Riverdale).

While single family houses are in strong demand, the ones that are selling in bidding wars are the totally renovated ones. So you'll have to be prepared to spend >$150k in renos to maximize returns.

On the other hand, duplexes have always been popular, especially with the economy being a bit shaky. They are sold primarily on their rental income. But the buyers who plan to live in one half, like you, will pay more than investors who simply want to be a landlord.

I have sold quite a few of these 3 Storey Semi-Detached homes and have a few key strategies that help people get top dollar. Email Menander webcam discuss your situation privately: geoffrey(at)gracehomes.com

BTW - Are you North or South of Gerrard?

 

[UrbanVigor]

But the buyers who plan to live in one half, like you, will pay more than investors who simply want to be a landlord.

When you say they will pay more than investors are you referring to the fact that they will bring in less rental income or they will pay a higher purchase price?

 

[GraceCondos]

When you say they will pay more than investors are you referring to the fact that they will bring in less rental income or they will pay a higher purchase price?

They will pay more for the property (sale price) because instead of focussing on the cap rate (investor jargon) they just look at the rental income from the other suites as gravy to help them pay their mortgage.

We've found the best success in marketing to owner occupiers in a way where they can see themselves living in one unit in the short term and once they have saved enough, converting it to single family for themselves.

 

[realtygeek]

They will pay more for the property (sale price) because instead of focussing on the cap rate (investor jargon) they just look at the rental income from the other suites as gravy to help them pay their mortgage.

We've found the best success in marketing to owner occupiers in a way where they can see themselves living in one unit in the short term and once they have saved enough, converting it to single family for themselves.

This is exactly the reasoning that my Realtor talked about when I looked at the house. Reasoning I wished I had not listened to. My original plan was to find a smaller single family house with ideal space for a single person or a hard loft conversion that would provide me with the character of a house that I was really seeking with the convenience and low maintenance of a condo.

My decision to purchase a duplex was done at a time when there was very little inventory on the market and my condo was closing quickly, and after a number other more desirable houses going for way above asking it was the only thing that fit into my budget (I was the only offer at asking). Unfortunately I didn't have the foresight and self awareness to realize that I'm not cut out to be a "live in" landlord or that owning an older un-renovated house can be very challenging...especially for a single person.

In any case, I've decided to not to convert to a single family and put money into the house that I may not get back in the selling price. Hopefully potential buyers will see it as a house of options and be willing to take it on. There's a multi unit house on sale a couple of streets over from me...it'll be interesting to see what it goes for...it seems to be taking awhile to sell.

If I plan to sell next year, when is the best time to list?...Spring, Summer, Fall?

Thanks for the input everyone!