Capital Expenditures on multi family real estate

[Viola Boyd]

Hello hello everyone, at this current time I am researching about capital expenditures. I would definitely like to know people's take on keeping the cost down.

[Michael Albaum]

The best way I've found to keep costs down on my multifamily properties is to spend money. I know, it's a bit backwards, but I've found that the best way to keep from having to shell out big bucks, is to continually shell out small bucks and not let maintenance get deferred. If you keep everything in good working order, just like your car or lawnmower, it's going to work better, longer and end up costing you less money over time. It seems pricey to get your furnaces/boilers inspected and maintained, but it's a whole lot cheaper than buying a new boiler/furnace. 

Also, when it comes to replacing things...it may cost a bit more money upfront, but if you put in quality material/appliances (within reason), they are likely to last longer.  I just got done with a unit turn, where I opted to replace the carpet with laminate flooring, but the choice came then to which flooring to use, the cheap stuff at $0.75/sq/ft, or the waterproof and durable stuff at $2.50/sq. ft. I figured the more durable stuff will likely last several tenants vs. the cheap stuff may need to be replaced at each turn. And the labor is the same to install either one. 

Lastly, one thing you can do in all your units is install low-flow toilets and shower heads. This is something I've started to do in all my units and it's been great.

Hope this helps!