Denver multi family renovation numbers

Average rents before renovation = $850

Average rents post renovation = $1150

Number of units = 22

Construction spend = $450,000

Total gross increase to annual revenue post renovation and stabilization = $79,200

Punchline = 17 months ago we purchased this building in Denver and spent roughly 450k doing a full interior and exterior renovation so that we could collect an extra 80k in rents per year which means for every dollar we spent in renovation, we will make 17 cents for the life of the asset. That doesn’t include any rent increases which in Denver is an average of 5% per year.

Boom! Let’s do it again.