Updated almost 13 years ago on . Most recent reply
Any market for luxury units?
Little background, I've rehabbed and flipped a few houses, had one single fam house rented that I'm just finishing a major rehab on and will sell. Major midwestern IL city, low cost of living, real estate rates do not fluctuate much, very consistent. Nice homes average $150-200k.
Anyway, been analyzing a couple 4 unit buildings and was just discussing with an investor/rehab friend that it would be interesting to see how a luxury unit(s) would go over.
In the area I'm looking in, nicest area of the city, rents are ~$750. In my research, I've never seen a higher end unit, almost all are built/rehabbed as cheaply as possible, which just brings in another low quality renter. I could rehab and really make a nice looking unit that is much nicer than every other unit in town. Is it feasible to think I could add 50% rent value? Is this done outside of major luxury areas? i.e. manhattan, downtown Chicago, etc.
You could realistically do a fantastic remodel on a unit for less than $4k, bring in a high quality renter @ $1200+.
Just a thought, anyone else tried this out?