Multi-Family Performance Questions

[Ean Savoy]

Running numbers on a small multi-family and have general figures for most line items but looking for thoughts/strategies on targeting value after improvements have been made and performance has been improved.  How do you ballpark value/cap rate after?

[Account Closed]

Quote from @Ean Savoy:

Running numbers on a small multi-family and have general figures for most line items but looking for thoughts/strategies on targeting value after improvements have been made and performance has been improved.  How do you ballpark value/cap rate after?

 I’ve done rehabs in the 10-20 unit range and one thing I didn’t expect is the time and expense to change the culture of the building. It’s not an issue for class A buildings/neighborhoods, but is challenging in Cs and Ds. Good tenants don’t want to live with bad tenants so, if you’re doing this type of project, you might want to assume that you’re first units will sit vacant a long time until you find the kind of tenant you want and that you will need to keeps rents low until you have several units with good tenants.