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Updated almost 7 years ago on . Most recent reply
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What is the best strategy for rehabbing occupied units
Any suggestions from investors who purchase a property and perform interior rehab with tenants occupying the unit?
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You get rid of the tenants first then reno and find new tenants at the new higher market rents.
Ideally you want to raise the tennats rent to market when you purchase and do nothing in renovations until they decide to leave. There is no reason to spend money on existing tenants. Tenant turnover is when you do improvements but only if it will raises your market rents for your next tenant. If renovations do not result in higher rents you only do a lipstick reno at turnover.