Property Upgrade ROI

[Gaurav Bhasin]

Hello, I’m closing on a property that was built in 2002. It’s a fourplex with four 3 bedrooms and 2 paths that has carpeting. The rents currently are $550-$600. But the market right now is approx $650/$675. I found the cost to upgrade the carpeting is $2,100 to Linoleum. That can make the appearance of the units better and can increase rent by $50 potentially per unit. How is roi on an upgrade calculated and would you do this or leave as carpet?