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Updated about 7 years ago on . Most recent reply

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Eric Booker
  • Newport Beach, CA
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What is the best strategy for rehabbing occupied units

Eric Booker
  • Newport Beach, CA
Posted

Any suggestions from investors who purchase a property and  perform interior rehab with tenants occupying the unit?

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You get rid of the tenants first then reno and find new tenants at the new higher market rents.

Ideally you want to raise the tennats rent to market when you purchase and do nothing in renovations until they decide to leave. There is no reason to spend money on existing tenants. Tenant turnover is when you do improvements but only if it will raises your market rents for your next tenant. If renovations do not result in higher  rents you only do a lipstick reno at turnover.

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