Poorly managed multi family

[Freeland Wilson]

Have you ever recovered a poorly managed multi family? I haven’t and that’s why I reach out now for advice. I have an idea to take a poorly managed multi family property and add value to it by not only physical improvement but also improving the community. Does It make since to provide financial education resources to the current tenants leading up to rent increases to help the transition? What is the hardest thing about these transitions? I’m specifically referring to c class properties with b class potential.

[Bjorn Ahlblad]

@Freeland Wilson I bought a 12 unit three years ago and still have it. It was well maintained but the owner had not been paying attention to how the rental market had moved. We did some exterior painting, landscaping, removed some ugly stuff outside, replaced a few feet of railing-nothing expensive. 

We have turned over 8 units so far, painting and replaced flooring each time-again nothing expensive and raised rents aggressively in those units-200/per month. 

We raised the rents on the other tenants too, just not nearly as much and we have not spruced up their units either. The income up by 25k+/yr. which is more than we planned on, and everyone is paying.