Roof, siding and windows will dramatically improve the curb appeal and should increase the ARV, but unfortunately, those things are also big ticket improvements. If your tenants are paying rent, you might consider waiting until they vacate to do the renovation of their unit. But if your endgame is to increase the ARV and flip the property, you might try raising the rent. They will either pay it or vacate and give you a chance to do the renovations. Either way, Increasing the ROI or renovating the units will raise the ARV. Consider using sold duplexes or quads to help you determine the market value if you can't find any triplexes. Best of luck!
Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Drew Bursey An agent can help with the ARV. Know that if they have trouble establishing value, the appraiser might as well and that is the wild card of the process. As far as the external rehab, you can push somewhat that way. If the property qualifies for conventional financing, what about securing a loan now... doing the external rehab now, doing the interior upgrades over time as tenants turn, then refinancing out later?
I have one unit that I bought 4 years ago and still have not upgraded it other than the outside. The property has increased in value $65K, the tenants are rock-solid, we've also been able to raise rents during this time. At some point, when they leave, I"ll be able to rehab it, or maybe even sell... Make sure to evaluate all scenarios.
Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Drew Bursey Are the willing to purchase and provide funds for the rehab? Does the property carry these numbers? If you don't want to kick the tenants out, how do you propose you will execute the interior updates (or do you need the interior updates to achieve value)? I think you first step having at least one realtor do a comparable analysis and see if they can establish value and go from there.
New to Real Estate · Tasmania · Member since 2020 · 29 posts · 10 votes
6y
@Whitney Hutten Yes they are if the numbers work (I haven't got all the numbers yet). I found the property without a real estate agent and I'm in the process of finding one to see how much the ARV can be and finding quotes. The more I research, the more I think it's not possible... I think I might have to find another property.