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Updated almost 6 years ago on . Most recent reply
What‘s your ecpected ROI on renovations?
My colleague suggested the following as a loose rule of thumb for ROI expectations on general upgrades:
Ex:
For $100 rent increase:
$100x12 mos= $1200
$1200/20% (ROI)=$6000
Conclusion: $6000/door = $100 rent bump
Do you agree/disagree? I’m sure this is a pretty general ROT and will depend on your market and what upgrades you’re doing?
Always appreciate any input!