Denver 4 unit apartment building remodel complete

[Terrance Doyle]

Another Denver 4 unit apartment remodel completed!! 3 one bedroom and 1 two bedroom units.

• Purchased on July 20th 2019
• Completed October 28th 2019
• Rents prior to renovation - 750
• Rents post renovation - 1,295

Construction costs = 115k 

Increase to annual rental income = 26k 

Increased value of building based on new rents if sold @ 6% cap rate = 110k per apartment

Lessons learned: We had one tenant that refused to move out even after living rent free for 2 months. We offered to pay for relocation and pay their deposit, but they would not work with us. It took us 12 weeks to go through the eviction process, because we tried to handle it ourselves. We would have saved more than 10k in legal and holding costs if we would have handled the eviction process correctly from the beginning. Evictions are an ugly side of the business but very necessary. Make sure you have someone on your team that knows how to do them correctly from the start of a project.