Multi Family Rehab - All units, some or just a couple

[Oren K.]

I am starting the process of rehabbing a 39 unit ~50% occupied property. The property is  in a blue color / section 8 neighbourhood. Good bones but due to ownership dis-interested over the past years, many of the unoccupied units need a fair bit of work (Kitchen, Bathrooms, etc.). The occupied units also need work. I am finishing up the exterior / mechanical systems (Roof / Boiler / Tuck Pointing / Lot Patching) and now will start on the interior.

I am struggling with the question of how many units to to how fast. The PM company, who I do trust, is recommending just doing 2-4 units and seeing what the market uptake is. My inclination is to do more (10-12) for a couple of reasons;

• Better pricing on materials and labor
• I can be on site and so do more oversight
• If there is uptake, the PM has 'inventory' options

Looking for input / thoughts / experiences.