Investor · Los Angeles, CA · Member since 2015 · 86 posts · 21 votes
Considering a 4 plex that need work but has tenants in place. Looking for suggestions on what / how to rehab while leases are active in order to refi out of hard money?
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
5y
@Tom Camarda, it sounds like you want/need to do interior work to get the valuation you want.
The first question I would ask myself is do I want to keep the existing tenants? If not, then the question is when and how you get them out. You may offer the worst tenant money to leave (keys for cash) so that you can rehab the unit while vacant. If leases are near their end you can just not renew them.
If you have excellent tenants, you can probably do some basic cosmetic work with their approval and cooperation. Things like paint and flooring are certainly doable if you hire professionals who can get the work done in a timely manner.
If you want to do extensive rehabs like a gut remodel of a kitchen or bathroom, then you just need to make the units vacant no matter what the tenant situation is.
Investor · Los Angeles, CA · Member since 2015 · 86 posts · 21 votes
5y
Thanks Kevin. I'm thinking the cosmetic route is the way. Start with the exterior, then inquire about light work interior before raising rents... And then refi.