I also dream about buying apartment buildings and converting them to co-ops. From some napkin math i did a while ago, it seems financially feasible to secure a loan on a large building with 10-15 people with ~$10-15k each contribution on a 5-10% down payment. Then costs as a co-op could be significantly less per person than any anything else available on the market while still generating enough “profit” to potentially do it again.
Operating costs for landlords are high and its seen as investments for generating income, but as a co-op a lot of the work would/could be done by members. Labor costs are (can be) essentially non existent - there’s no property management company to hire - general maintainence can be done by residence, etc.
It seems the biggest hurdle is that banks don’t generally like to give loans to co-ops. I have found alternative funding sources for co-ops, that may be able to help with the initial down payment but wouldn’t be able to provide the full loan on the building.
I also dream about buying apartment buildings and converting them to co-ops. From some napkin math i did a while ago, it seems financially feasible to secure a loan on a large building with 10-15 people with ~$10-15k each contribution on a 5-10% down payment. Then costs as a co-op could be significantly less per person than any anything else available on the market while still generating enough “profit” to potentially do it again.
Operating costs for landlords are high and its seen as investments for generating income, but as a co-op a lot of the work would/could be done by members. Labor costs are (can be) essentially non existent - there’s no property management company to hire - general maintainence can be done by residence, etc.
It seems the biggest hurdle is that banks don’t generally like to give loans to co-ops. I have found alternative funding sources for co-ops, that may be able to help with the initial down payment but wouldn’t be able to provide the full loan on the building.