Condos have become a much-needed form of housing for millions of mostly retirement-age American citizens. Why? Because these people no longer need to live in a large, virtually empty home, requiring a lot of upkeep and expenses, and condos become a rational answer to their problems. Maintenance requirements are limited to within the four walls of their apartment, and major exterior maintenance is paid for out of the monthly maintenance fee paid by each apartment owner.

To take advantage of this emerging market, many real estate investors are simply converting existing apartment buildings to condos. When converted properly, apartments converted to condos can give an investor a substantial profit on his invested capital in a very short period and thus provide an excellent real estate investing opportunity.

Okay, but hold on. Before you think about converting an apartment building to condominiums, there are some things you need to know about converting.

Foremost, you must assess and understand your real estate market. You want to be sure that there will be a demand for your condominiums, and you want to know at what size and resale price.

Secondly, you must determine how much it will cost for the conversion, considering such things as interim financing costs, renovation costs, and promotional costs.

Yes, condo conversations can provide you with a very profitable real estate investing opportunity. Just be cautious. Do your homework and run the numbers. It’s like the proverbial saying goes, “measure twice and cut once.”