Increase Commercial Multifamily Value

[Jason Xue]

Currently closing on a 30-unit commercial multifamily building. What are some good ways that you've used to increase the property value? 

Thanks!

[Michael Ealy]

Originally posted by @Jason Xue:

Currently closing on a 30-unit commercial multifamily building. What are some good ways that you've used to increase the property value? 

Thanks!

 Jason,

1. Can you increase the rents? or what can you do to increase the rents? Based on experience, that will have the biggest NOI and value increase so I always look for buildings with rents that are under market. To increase the rents, can you make the interior finishes a lot better than its competition? For example, if you have a "C" property, can you convert its interior finishes to "B" level?

2. Can you rent the whole building using government housing programs? That's what I do for some of my buildings and here's an example where I did just that and I was able to sell the building with a $1M profit:

https://www.biggerpockets.com/forums/311/topics/644570-how-i-made-over-1-million-on-1-deal-after-6-years-of-headaches

3. Can you lower the taxes via appealing it with the county?

4. Can you sub-meter the utilities?

5. Can you add more "other" income like having a vending machine?

6. Can you put solar panels to lower the electricity cost?

7. Can you convert the heating to electric combined with going solar?

8. Can you put water-saving fixtures (shower head, toilet, faucet, etc)?

Those are just some of the ideas I can think of. Hope that helps.