Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Multi-Family and Apartment Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 10 years ago on . Most recent reply

User Stats

108
Posts
10
Votes
Ron Steele
  • Birmingham, AL
10
Votes |
108
Posts

Rehabbing Existing Property With Tenants

Ron Steele
  • Birmingham, AL
Posted

I'm considering "rehabbing" or improving about 76 units that I own which is a portion of my older portfolio. These properties have been good cashflow properties, but they are more maintenance intensive since they are older. They are about 90% occupied.

I was considering the following:

  • Replacing all flooring with vinyl plank except for bedroom (add new carpet when needed)
  • Painting all units 2 tone colors
  • Replace appliances with new appliances that come with 3-5 year warranty
  • Change p traps and plumbing under sinks (Noticing more leaks and stop ups)
  • Change all filters (should be doing anyway I know) 
  • Resurfacing Tubs

I could increase rents on the property but I would only do so for my problem "late or non paying tenants" so the move would be a value add/bulletproof to reduce maintenance.

Anyone have any other strategies or suggestions? Is this over improving or should be done periodically anyways?

The properties are all about 35-50 years old.

Also should I finance these through cashflow of the properties a little at a time, Refinance some existing equity that I have, or go to the bank with the rehab plan and show a higher appraisal resulting in higher rents. My rents are about middle of market for my market (some a bit below)

Thanks for you help

Most Popular Reply

User Stats

108
Posts
10
Votes
Ron Steele
  • Birmingham, AL
10
Votes |
108
Posts
Ron Steele
  • Birmingham, AL
Replied

Thank you for your response.

I was going to do all repairs while the property is being occupied. You are probably right on the flooring and painting. Do you think I should wait until those items go out or should I go ahead and replace them?

In my experience with my tenants, its a slippery slope replacing thing, even when they break. What I mean is if I replace one tenants refrigerator or stove with a new because it legitamitely goes out, others will get jealous and I will have 15 that need to be replaced the next day. Funny how that works. 

Maybe just the disadvantage of lower income rentals. Most time you really have to treat a lot of tenants like children. Hope it doesn't sound demeaning just my experience in a short career.

Loading replies...