Improving Grounds | 36 Unit

[Mario Brown]

Going through a 36 unit repositon Spartanburg, Sc. First things I knocked out were...

-seal coat parking lot

-new roof

-wrapped fascia board

-painted and improved on-site laundry

Trying decide wether I should paint the entire complex or not for overall aesthetics and "rebranding." 

There is more to consider than the numbers on such a qualitative improvement, this is going to be a spirit lifter. 

How do you all weigh an improvement like this?

Warren Buffet says when evaluating intrinsic value "it is better to be generally right than precisely right." I think he is right here?

Here is where we currently are in project.. link in signature. 

[Joel Florek]

I always like to stick to the following ideas when spending money. 

1. Keep money coming in. Get all units in rentable condition and filled with tenants that pay each month. 

2. Upgrade items that will drive rents up. Focus on the best ROI items first. When you go to sell your property NOI is king and there are only two ways to change it, revenue up and expenses down. I like to focus on revenue up first in most cases as $$$$ solves so many problems.

3. Focus money in the capital improvement areas that will drive down operating expenses. I have old water heaters that end up with 6 to 10 service calls a year on. Getting new ones should mean those service calls get eliminated so this is my top of the list for mechanicals. Although I have older furnaces as well my tenants pay the heating bills and I only have 1 or 2 calls a year on those. 

Looks great and common areas are a great way to give something to everyone. With respect to painting the exterior, as long as it doesnt deter you from being able to rent your units or drive rents down I would ignore the project for as long as possible. You clearly have done a lot to make the place look great so I cant imagine any tenant is saying negative things about how you take care of the property(there will always be 1....ignore them). 

Best of luck and thanks for the photos.