Seeking low cost rehab ideas for 1980s four plex?

Question

My agent and I spent some time touring an interesting 4-plex property today.  It was well maintained by owner, had large units and was in relatively good shape.  If we decide to move forward with offer/purchase, I would like to make a few updates to the vacant 4-bedroom unit (pics below) to maximize rent and attract highest quality tenant possible.  However, the project can't afford a high cost rehab and the high purchase price.  Would love to hear ideas on where you recommend we spend a little ($8K-$10K) on updates.  There are some unique features like a bidet toilet?  Keep or remove? Update the sinks?  The living room downstairs has no windows with vinyl floor and a large carpet mat in middle. Normally I would always paint the interior, but the paint was in great shape (might have been recently painted?) so thinking of spending money elsewhere.  Initial ideas were to white wash the wood paneling for a farmhouse look, replace hardware for kitchen/bath vanities, new laminate countertops, maybe a backsplash in kitchen?, update bath light vanity.  Carpet is actually in pretty good condition/stain and tear free.  Keep?  replace with Laminate? what color would work best with cabinets?  Thanks!!!!

Account Closed · Answer

I would replace and update the lighting in the kitchen and bathrooms. I'd put "bling" on the cabinets with new knobs and pulls that are stainless vertical and I would replace the white appliances with good used stainless steel appliances. Faucets look fine. Looks like a marble floor so I don't know what you can do about the bidet. Finding matching marble to to fill in where you would remove it is going to be difficult. Turn it into an aquarium or a planter? I dunno. I'm assuming you are putting up blinds since it is unlikely renters will want to buy their own and it does get a bit nippy in Anchorage so it will help keep the heat in. Keep in mind that it is  a rental, you aren't going to live there. Don't over spend. Looks like a "find" though. Congratulations.

Cynthia Oistad · Answer

Thanks everyone!  The seller noted the 4 bedroom has rented for about $1850 in the past, however when I look at zillow and craigslist for similar 4 bedroom apartments in this same price range, the other rentals seem more updated? Should we do a few updates just to be sure I can still rent it for the same rate competitively and try to attract the best quality tenants?

Is there a rule of thumb for knowing how much to update just to stay competitive with the same market over time even if rent is maxed out at a certain range due to market demand/supply?  Our single family townhome has never rented over $1800.  a few years ago, we put in about $10K in upgrades and tried to rent it for $1900.  After 20 stressful days on market with very few calls, we lowered it back to 1800 and were flooded with 6 interested tenants in 2 days and got it rented.

Thomas S. · Answer

First question is how much will you be able to raise the rent based on the reno. I would not spend any more than the increased rent would pay back within 2 years. Other than figure out how to get rid of the bidet.

I would consider painting all the wood walls and cupboards, closet doors, install new hardware and Kitchen light (maybe). Other than that I see no point in spending any more money.

Probably less that 1K.

Corby Goade · Answer

I'd paint all of the cabinets grey, get modern pulls, replace the countertops, faucets and lighting fixtures. It'll look like a new place for a few thousand dollars. I would avoid used appliances like the plague. Early in my career I was all about used appliances and about 2/3 of the time they ended up being much more of a headache than they were worth. Unless you are in an A neighborhood and an A property, if appliances are functional and don't have physical damage, I doubt you'll get a return on replacing them. Looks like a nice rental, good luck!

John Acheson · Answer

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Cynthia Oistad · Answer

thanks Brad!  I will check that rehabapppliancesak place out.  I am pretty sure they post on CL also because I have seen their names.  We have had good luck with scratch and dent at DIY stores too.  We find we can usually negotiate an extra $75 or $100 off the clearance price just by asking...

Brad Arts · Answer

http://www.reliableapplianceak.com/

Might have some decent used appliances.

Also Seems like there is a fair bit of scratch and dent ss appliances at Lowe’s and hd lately.

I say get rid of the bidet. One more thing to break or leak and if removed it will help the space feel more open.

Put the $ into kitchens and baths if the floors are in decent shape?

I like the idea of white washing the wood paneling.

They look like nice units. Congrats.

Cynthia Oistad · Answer

thanks Mike!!  flooring is vinyl in bathrooms. good point on the blinds!  where does one find good used SS appliances? craigslist?