Big renovation with tenants living in there

[Michael Huang]

Thinking about buying a 200 unit value add apartment. The complex is currently 91% occupied. But these are some C- buildings at A- location. What I am trying to do is to upgrade the kitchen, floor, paint the wall, windows and doors to attract higher quality tenants and to raise the rent.  If I was doing all these on every unit with tenants still living in there, do I have to move them out temporary? Or do you do it section by section so they don't have to move out. 

[Michael Le]

You can't move people out just to upgrade. You do them as units become available. If you are looking to upgrade every single unit then it will take 12-18 months. But most people don't upgrade every unit as you want to have the upgraded units and corresponding higher rents to show as proof of concept. And then normally leave some meat on the bones for the next buyer, assuming you're looking to sell it in a few years.