Multi-family Beginner Questions

[Chris Barnes]

Hey Everyone, I am a beginner investor based out of Raleigh-Durham, NC looking to get into multi-family property investing. I plan to start with small multi-family units, and have looked at a couple deals in my area. One of my biggest questions is what was you all’s experience with receiving/analyzing a deal with current tenants already residing in the units, but you know you want to do rehab and renovations? How did you go about completing the rehabs, and how did you handle the tenants? Thanks, I look forward to the great knowledge!

[Greg Scott]

You basically have one of three choices:

• Manage the property as your normally would and just update the units after residents move out
• Push rents higher, to give some "encouragement" for people to move, but if they want to stay, they can at the higher rent
• Non-renew all your leases at the end of each lease, forcing the resident to move out so you can rehab the unit