Property Upgrade ROI

[Gaurav Bhasin]

Hello, I’m closing on a property that was built in 2002. It’s a fourplex with four 3 bedrooms and 2 paths that has carpeting. The rents currently are $550-$600. But the market right now is approx $650/$675. I found the cost to upgrade the carpeting is $2,100 to Linoleum. That can make the appearance of the units better and can increase rent by $50 potentially per unit. How is roi on an upgrade calculated and would you do this or leave as carpet?

[John Underwood]

Not sure on ROI but as far as making the place look better, making it pet friendly (large percentage of tenants seem to have pets) and eliminating having to replace 12 month old carpet after one tenant trashed it is priceless.