Renovating apartments - is it worth it?

[June Veenstra]

I own multifamily buildings with a lot of vacancies.  In order to get the vacant apartments back on the market they need extensive renovations.  I've done the calculations and it totally pays to renovate in towns such as North Bergen that will let me increase the rent 50% above the last registered rent (these are rent controlled buildings)if I spend $8000.00.  Where I can't raise the rent I'm thinking it doesn't pay to do expensive rehabs especially where the rents are artificially low.  The low rent property is in Union City.  I'm thinking just spend the minimum amount to get them back on the market .... nothing fancy.  I'm thinking that if the rents are way below $1000 per month than keep the apartment basic... nothing new if possible.... just clean, repair what's necessary and make it functional.  Where the rent is above 1000.00 a month I might pop a new kitchen or bath in because I will make back the investment in a year.  Thoughts?