Here's $700k. How would you rehab this property?

Question

Trying to get some insight by some of the great value add developers here. Let's assume you just purchased a 100 unit class C in a class B/C area. How would you allocate the $7k per unit to increase rents? Let's assume:

• nothing is broken
• nothing is amazing
• all major items are "fine" (it doesn't need a NEW roof, but no major leaks)
• no pool
• no car ports or garage
• no dog park
• mixed units 1/1, 2/1 and 700-850 sq'
• water, gas are billed

If you are about to answer this with a: "Well it all depends on the circumstance, no two properties are alike." please move on. We are all aware of this. I just want to know where people feel they are getting the most bang for their bucks.

Currently I think, fresh painted rooms, hookups for washer/dryer, painted cabinets and refinished countertops, would be a good start. Perhaps add some LED lighting to the area to increase safety.

Looking fwd to some out of the box ideas!

Victor S. · Answer

@Ben Leybovich is your man for this (check his purchase threads on here and what upgrades they did). what rents is it commanding right now vs similar competition? (and what amenities does competition provide) is the area closer to being a B or a C?

Greg Dickerson · Answer

You didn’t mention fitness facilities. That’s huge. Amenities are critical in today’s competitive value add environment. Movie theatre, business center, WiFi, smart home options like door locks etc. Indoor mailboxes, package lockers (Amazon hub), dog parks, pools, playgrounds, storage garages,etc. It’s all about lifestyle these days.

Of course this all depends on location and type of property and competition.

Gaspare U. · Answer

@Victor S. it's a fictitious property, but the areas I am looking at are solid Cs, but close enough that the long term game would hopefully convert into Bs.

I will check him out, thank you again!!

Gaspare U. · Answer

@Greg Dickerson great points and lovely amenities to have. As always thank you.