So, I am looking at a property in the Texas specifically the DFW metro area. It is a smaller 1970s apartment building of 10 units. The units are all 2bed and 1ba 740sf. They do not have washer/dryer hookups and owner says he does not think it is possible to put in. There is a small laundry area of premise but do you think that will affect the occupancy rate or future occupancy of property? Currently, it is 100% occupied but I am worried about what the future of the building will be if a lot of newer places come up.
Also, on a side note what do you think about the sizes of the units. I am thinking 750sf is a little on the smaller side as well and worried about how that will affect occupancy. I am unsure if I should just pass on this deal and wait for something better but these smaller complexes in my price range are hard to find and not sure if I am overthinking. Thank you.
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
7mo
Sorry, no idea. The ideal time to do it is if you plan to reno, replacing kitchen cabs, and bath vanity and fixtures. If you update just cosmetically, without changing pipes, you get to tear most if it out later when the pipes do start leaking. Cost will depend on access to the internal pipes. If they are mostly accessible from a hallway wall, for example, it would not be as bad as removing or modifying cabinets to get the pipes out and back in.
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
7mo
I'm assuming this is a walk up, probably common to the area? If they have a card or coin-op laundry on premises, that is likely very common also for the price range. It is unlikely the individual units are properly plumbed or wired to simply add machines into a closet etc. and it will be very costly to upgrade. OTOH, if you plan to reno the property, times have changed, and it would definitely be a value add if you reconfigured and provided in-unit equipment. There are some nice "combo" units now, that perform both functions in one, compact unit.
Be sure to investigate the actual condition of the existing supply and waste lines for the building, as that will be a major expense and likely overdue for complete replacement unless previously addressed.
Thank you. Yes, this is some bellying in the line as it has cast iron plumbing and that is a point of discussion already.
Need to check more than just the main line out to the street. Odds are you have a mix of cast and galvanized iron lines from sinks and other fixtures, in your walls, that are in poor condition as well. Often, by that age, there is a build up of scale on the inside, and the pipes will develop a crack for much of the length of a section. Also the thread of the iron pipes, especially the nipples that come through the wall where your traps connect to it. These can often leak back into the wall cavity.
If I decide to move forward I will get a plumber out but if I had to replumb the whole building about 7000sf and replace sewer line do you have any idea of cost? All plumbing on one side of building and just for stacks are visible from roof. I heard the price based on number of stacks not sure if that is true or not.
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
7mo
Sorry, no idea. The ideal time to do it is if you plan to reno, replacing kitchen cabs, and bath vanity and fixtures. If you update just cosmetically, without changing pipes, you get to tear most if it out later when the pipes do start leaking. Cost will depend on access to the internal pipes. If they are mostly accessible from a hallway wall, for example, it would not be as bad as removing or modifying cabinets to get the pipes out and back in.
Investor · NV and CA · Member since 2016 · 374 posts · 227 votes
7mo
@Tiffani Brown- I have a 5-unit apartment complex that has a community laundry room. I've been told it's not technically feasible to add washer / dryer hookups to each unit. I'm not seeing more vacancy on this property due to the laundry room than other properties in the area. However, I think it's important to advertise the units as having a community laundry room so that you get tenants who are actually ok with that arrangement.
You don't necessarily need to have coin washer / dryers. There's an app called Payrange that can allow tenants to pay electronically. It's simpler and there's less risk of theft.
I would check how other properties with 740 sf units are performing in the area. It doesn't seem too small IMO but every market is different.
Property Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
7mo
Everything is rentable for the right price. We have several common laundry buildings in Indianapolis and they rent fine. 740 sqft is fine for a two bed apartment. (Think of all the room for activities due to no laundry room :)
You aren’t competing with new builds. They will always be better. But they will be much more expensive. Your product will be totally different with different clients.
Nice clean affordable housing in a decent area can be a great asset. We manage hundreds of these units, and with the lower cost basis produce good cash flow , even with all the plumbing work orders.
Investor · Hatboro, PA · Member since 2016 · 3k+ posts · 866 votes
7mo
Lack of washer/dryer hookups isn’t a deal killer if rents stay meaningfully below newer properties. If it’s 100% occupied now, the market is accepting it as-is.
740–750 sf for a 2/1 is small but normal for 1970s product. Layout matters more than raw size. Plenty of renters will trade space for price.
The real question is basis. If the deal works assuming you’re always the affordable option, it could be solid. If it only works with aggressive rent growth, I’d be cautious.
I just bought an apartment without any w/d hookups. I brought in plumber and electrician and get an estimate for adding that. If you want to message me, I can send you more details.
I just bought an apartment without any w/d hookups. I brought in plumber and electrician and get an estimate for adding that. If you want to message me, I can send you more details.
Getting a quote is fine, as long as your Contractors are Legit. It does not mean you should do it. Depending on age of the property, if your Waste lines are not sized properly (and free of scale buildups or other age related obstructions within the line) for the added physical capacity to handle the washing machine discharge volume, you will have problems of backups through the standpipe.
The same principal applies to the electrical side of the equation. Dryers take a lot of amperage, if you do not have adequate capacity to the building OR the units, you cannot try to "get by" with less than.
The 100% occupancy is a good sign; it seems like the market is accepting it as is! Though I'd be curious what adding W/D hookups could actually do to rents in that submarket, that seems like the piece worth figuring out before deciding.