How to add value to a quad plex

Question

Hi Folks,

I recently closed on a quad and I have described about this deal in my below deal diary.

https://www.biggerpockets.com/forums/850/topics/759480-my-first-multi-family-quad-in-huntsville

I have been reading a lot about apartment and multifamily investment and trying to see how to add value in order to increase the rent or save on expenses in my current quad.

I wanted to see what are some of the creative ways other folks have added value to a quad or a small multi.

Cheers!

Tj Hines · Answer

Hi @Gorden Lopes! The best way to add value is to upgrade the current amenities. Flooring , countertops, cabinets, appliances etc.  Take a peep into what the competition is doing. Be vigilant and pay attention to how much they are receiving in rents especially if they are getting premiums in those units. You simply want to model what is working and not reinvent the wheel. This will also keep you from over improving the units. Good luck

Ryan Landis · Answer

Congrats on the closing. Not sure what the utility situation is, but if there is a way to legally make it so everyone has their own meter/etc. might be a way to pass on some of the expenses. I have seen some people take a quad and run one of the units as a short term as well if you are up to it (we do that for a 5 unit we have - 4 traditional and 1 non traditional)

Gorden Lopes · Answer

@Bjorn Ahlblad

The roof is in good shape and each unit has a separate water and electricity meter.

Each unit is 2/1 and there is hook up for washer drier but the actual washer drier is not provided. I was thinking of perhaps adding washer drier in the unit but my PM mentioned that its not common in Hunstville and adding washer/drier means more maintenance issues.

The current rent is at 700 each unit and with washer/drier I can at max bump it to 750. Thats something that I am thinking about but more inclined towards not adding the washer drier.

I was reading this book "Crushing it in apartment investing" and the author mentioned about adding water reducing faucets or motion detecting bulbs which will be turned off automatically. Wonder if anyone here has done anything on these lines.

Thanks for giving your input!

Bjorn Ahlblad · Answer

@Gorden Lopes I would start with landscaping and painting outside; how's the roof and major systems? Maybe laundry room, covered parking, paint doors, trim etc. Inside I have done painting and new flooring, bathroom tile cleaning and grout as needed etc. Do enough to get to market rents and no more; overimproving is money down the toilet.

How to add value to a quad plex

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