MIDDLE HOUSING

WHITE TIGER CONDO CONVERSION

“Homeownership creates stability of tenure and is one of the major ways that Americans build wealth and financial security. Given the limited land supply in San Francisco, condominium conversion is viewed as an easier way to expand homeownership opportunities than through new construction.”

— San Francisco Planning and Urban Research Association (SPUR)

UNLEASHING THE POTENTIAL: RESIDENTIAL INCOME PROPERTIES 

Investing in residential income properties, especially 2-4 unit buildings, is an appealing way to enter or diversify within the real estate market. Condo conversion offers a cost-effective route to homeownership and is a strategic investment in the current landscape. Securing a mortgage for a 2-4 unit building is comparable to financing a single-family home, with the added advantage of commercial property leverage. This boosts financing and investment opportunities.

While traditional models involve buying, renting, or selling multiplex properties, condo conversion adds a new dimension. It provides affordable homeownership options and flexible investment strategies, allowing property owners to unlock increased value and returns. Transforming TIC properties into individual condos positions assets for peak performance in today’s real estate market.

MIDDLE HOUSING: SEIZING NEW NICHE OPPORTUNITIES

Middle housing consists of multi-unit buildings that are larger than single-family homes but smaller than large apartment complexes, typically found in walkable neighborhoods. These structures offer a range of housing options that cater to different household sizes, incomes, and lifestyles, fostering community connectivity and walkability.

The demand for market-affordable housing is surging due to rising home prices, increasing living expenses, stagnant income growth, and evolving lifestyle preferences. Condo conversions address this need by transforming existing properties into affordable condominium units, making homeownership accessible to those struggling to enter the market.

Condo conversions not only meet this growing demand but also revitalize properties and communities. There are several housing types for middle housing which include:

Duplexes: Buildings with two separate living units, either side by side or stacked. Converting a duplex into individual condos allows for homeownership while preserving the existing structure.

Triplexes and Fourplexes: These buildings have three or four separate units, respectively. Converting them into condos offers flexible ownership and financing options for both investors and residents.

Small Apartment Buildings: Usually with five to ten or eleven to nineteen units, these are common in urban areas. Condo conversion provides an alternative to traditional renting and appeals to buyers seeking affordable homeownership.

Mixed-Use Buildings: Combine residential and commercial spaces. Converting these into condos creates vibrant living environments with access to amenities like shops and offices.

Townhouses: Multi-story homes sharing walls with neighbors. Converting townhouse complexes into condos provides individual ownership while maintaining community and shared amenities.

Courtyard Buildings: Feature multiple units arranged around a central open space. Condo conversion can enhance communal outdoor living areas.

Live-Work Spaces: Designed for those who want to live and work in the same place, offering a blend of residential and professional environments.

Cooperative Buildings (Co-ops): Multi-unit buildings where residents own shares in a corporation that owns the property. Each shareholder occupies a specific unit, and conversions can create individual condo ownership.

BALANCING HOMEOWNERSHIP ASPIRATIONS WITHOUT FINANCIAL STRAIN

Many people dream of owning a home but worry about overextending financially and becoming "property poor," where most of their income is tied up in home expenses. They seek a balanced lifestyle that allows for homeownership while still enjoying travel, leisure, and personal growth. Condo conversion provides a smart solution by offering lower upfront costs and shared responsibilities. This approach enables individuals to achieve homeownership without compromising their financial freedom or flexibility.