Renovation with Tenants

[Christopher Dunson]

Hello BP members and professionals. I am closing on my first 2 4 plex's at the same time in 5 days or so, and am trying to figure out a game plan for the properties. I'm pretty much doing the BRRRR strategy with these properties and refinancing most of my money out at the end. The problem I have is that they are occupied, and because they are both financed with hard money, I would like to find a way to take care of the renovation in the fastest way possible so that I can refinace and continue with this great real estate journey I am having. The team portion is not a problem as I have flipped 3 houses since June of last year and am fairly confident they can handle anything needed. The 4 plex scenarios are as follows:

4 Plex 1: Units 1, Bd 1, 540Sq. Ft. Ba3 units occupied, 1 vacant, with 2 units leases up and paying month to month.

Purchased at 160k and hope to refinance out at 220k

Improvements needed/Improvement options:

(possible not all improvements are needed to refinance)

1-Roof, 2-Parking area(50+years old), 3-Ext. Paint, 4- Ext. Storage( I'm between adding a single coin laundry for all, or using the individual units storage for laundry rooms as there are none on property at the moment[leaning torward individual] ). 5-New/Repair HVAC (2 units)(I have seen some good alternatives to HVAC and window units, any comments on any other money saving option that is better than window units but cheaper than HVAC would be appreciated). 6-Flooring interior, 7-Int. Paint, 8-Leaning towards keeping current cabinetry, but sanding and painting, 9-Granite and or Vinyl counter tops, 10-1 water heater. 11-New windows/glass depending on other repairs. ( Such as which cooling and heating system buildings will utilize).

4 Plex 2: (same size) All units occupied with 1st lease expiring in May.

Purchase price same. Same improvements minus the roof, and Add Exterior Iron Gate entry.

Thinking of adding security cameras on both buildings. ( Are in C neighborhoods )

• My main goals are to do the repairs that normally yield the biggest difference on an appraisal. ( I am planning on hiring an appraiser to look at the property and tell me what would need to be done in order to get these properties up to or around the price point I need). I realize all appraisers are different, but I feel more comfortable getting a professional ( hopefully ) opinion.
• If necessary to renovate interiors before refinance, is there a way to do it while they are there with their permission before their leases ends? 
• Is it possible to fix the vacant unit, and offer to move tenants to a (nicer unit) in order to continue through the units and get them all finished quickly?

• As for the tenants who's leases are expired, I am thinking about letting them know that rents will be raised, they can choose to stay and have their unit renovated and their own washer and dryer, or choose to find somewhere else they might prefer.
• I'm highly considering doing section 8 leasing with these 4 plex, so any other recommendations that pertain to section 8 requirements or that may yield higher rents as far as specific renovations go I am definitely all ears.

All other Ideas or any advice whatsoever is greatly appreciated. I'm normally the type of person who just reads and thinks he can do everything himself, but I'm learning in real estate that I need to have a team, and I'm very grateful to have this team here at biggerpockets. Any other questions or information need that I might have missed please call me out on it. Thank you.