- Joined
- Mar 17, 2011
- Messages
- 133
I'm in the process of buying a 4-plex. I take possession on the 30th.
It is a 1978 build and could use a substantial amount of work. Windows are horrible, 2X4 build so needs a wrap, aside from fresh coats of white paint there has been little to no upgrades and the ones that were done scream drunken DIY.
I'm still working on getting solid numbers but it is looking like the total renovation cost will likely be around $150k, but I have fears it could get as high as $200k. This will finish all 4 basements, new kitchens, bathrooms, windows, siding, decks added to the front, flooring, electrical, appliances, and on and on.
I estimate my rents should conservatively increase $350/month after the renovation. The beauty of it is I will raise my tenant profile, lower my maintenance costs, and likely decrease vacancies as it will be in demand (it is only half full at the moment due to lousy management)
My question is, does anybody have any tips on how to decide whether to go ahead and renovate or not? Any magic formula that you may use to decide? I'm just wondering if it makes more sense to just leave it as a low end rental and not spend a bunch on it. It is in a great location surrounded by a mix of buildings in similar condition and age, to brand new buildings, to fully renovated older buildings.
I paid $340k rent is currently $950/corner
Located in Cold Lake Alberta.
Any questions or details I missed let me know. Thanks in advance for any advice on how far and fancy I should go with the renovation.
It is a 1978 build and could use a substantial amount of work. Windows are horrible, 2X4 build so needs a wrap, aside from fresh coats of white paint there has been little to no upgrades and the ones that were done scream drunken DIY.
I'm still working on getting solid numbers but it is looking like the total renovation cost will likely be around $150k, but I have fears it could get as high as $200k. This will finish all 4 basements, new kitchens, bathrooms, windows, siding, decks added to the front, flooring, electrical, appliances, and on and on.
I estimate my rents should conservatively increase $350/month after the renovation. The beauty of it is I will raise my tenant profile, lower my maintenance costs, and likely decrease vacancies as it will be in demand (it is only half full at the moment due to lousy management)
My question is, does anybody have any tips on how to decide whether to go ahead and renovate or not? Any magic formula that you may use to decide? I'm just wondering if it makes more sense to just leave it as a low end rental and not spend a bunch on it. It is in a great location surrounded by a mix of buildings in similar condition and age, to brand new buildings, to fully renovated older buildings.
I paid $340k rent is currently $950/corner
Located in Cold Lake Alberta.
Any questions or details I missed let me know. Thanks in advance for any advice on how far and fancy I should go with the renovation.