New to Multifamily and afraid of overimproving

[Tab Teehee]

Hello seasoned property gurus! This is m first BP post, so far I’ve been reading all I can! I’m just starting out in Multifamily with a 1975 era 20 unit property in Oklahoma. This property is a virtual time capsule, complete with red shag carpet and green appliances! The bank is just about to order an appraisal and wants to know what my remodel budget is. Since these are smaller units at about 750 sq feet each or 14,000 total and I’m only dealing with 20...I wondered if it might be acceptable to go for a more upscale look? I’m thinking hard surface floors, granite counters, tile backsplash,  stainless appliances, etc. Is there a simple way to determine how much is too much? I’m competing with a few mid grade properties that don’t really offer the upgrades I had in mind, kinda wondering if I could find a niche here? Thoughts? 

[Salvatore Lentini]

@Tab Teehee renters will not overpay.  They’ll shop around for $25.  I rehabbed an apartment building and was doing mid grade upgrades.  I was bringing rents up from $650-$700 to $800-$895 depending on size.  After a handful of those I decided to go all out on this one unit.  Sat on the market for months at $1050, then $1000, $950... lots of showings and then rented it for.... drumroll please..... $895 like other units with lesser upgrades.  Sometimes depending on the area the max is what it is.