Apartment Building Upgrades: Where to start?

[Rob Bianco]

I’m taking ownership of an 11-unit apartment complex in a revitalized part of town but the property needs upgrades and the starting budget is only enough to get the ball rolling. I am not sure where to prioritize my funds?

HVAC is super old but functions. Apartments are nice but could be nicer to get top dollar. Laundry Room still takes quarters but requires brand new machines for electronic payment compatibility. Lastly, the common areas are desperately old looking and need an update.

I have about $75k with about another $40k by the end of 2021 but am undecided on where to focus my efforts...

My first instinct is to first handle the common areas as it’s the first thing people see and then slowly get through about 6-7 units with upgrades and get higher paying tenants to create more profit and less stress with my monthly mortgage.

I figure HVAC I can handle as things die and laundry machines once the apartments are renovated since it’s a nice desire but not totally necessary.

Any advice?