Rehabbing Existing Property With Tenants
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