Any suggestion on the interior design budget?

[Li Lu]

I recently closed a building with 24 residential units and it is more than 100 years old.

I have talked with a designer/architect about interior design.

His quotation is around 21k for all the units.

Is the quotation reasonable?

I remembered I saw one of the posts that said the budget is around $1000 for an apartment.

Please share your experience. 

Much appreciated!

[John Underwood]

Quote from @Li Lu:

I recently closed a building with 24 residential units and it is more than 100 years old.

I have talked with a designer/architect about interior design.

His quotation is around 21k for all the units.

Is the quotation reasonable?

I remembered I saw one of the posts that said the budget is around $1000 for an apartment.

Please share your experience. 

Much appreciated!

 That seems very reasonable to me.

[Michael Baum]

Hey @Li Lu, seems very reasonable to me as well. Can you tell us what you are getting for that price.

Seems almost too low to me.

[Account Closed]

Quote from @Li Lu:

I recently closed a building with 24 residential units and it is more than 100 years old.

I have talked with a designer/architect about interior design.

His quotation is around 21k for all the units.

Is the quotation reasonable?

I remembered I saw one of the posts that said the budget is around $1000 for an apartment.

Please share your experience. 

Much appreciated!

It really depends on what you are getting for that. We just picked up a higher end 5 bed 3 bath with pool that we are setting up for STR family events (reunions, bachlorette parties, anniversaries, super bowl, Barret Jackson Car Show, TPC golf turnament, and your regular "I want to get out of MInnesota into the sunshine and warm" crowd, etc) and the costs are much higher than your quote.

If you want to keep things under $1,000 an apartment, I don't think that includes bedframes, mattresses, linen, night stands, window treatments, and so on. You should have your designer itemize what they are specifiying and the manufacturer, plus whether the items are new or used. Used is okay, but you need to know if they will need to be replaced in the near future. 

[Dorene Mangels-Bacalhau]

21k for 24units as in rental apartments did I understand that correctly-is that just a proposal of ideas? That seems low if that’s to include furniture for such a massive resort. If you need everything from, dishes, bedding, bath linens, furniture (bedroom, LR, Dining and accessories, art & window coverings, appliances, electronics). A modest 1BR apartment needing everything new could run you $8-10k ea…if you are sourcing from flea markets or FB market for used stuff I still think under $1k per unit it probably low unless you can DIY everything to pull off your design atheistic.

[Nathan Gesner]

Quote from @Li Lu:

There is no set price. Some rentals only need paint and a little cleaning. Some need to be fully renovated with new bathroom fixtures, kitchen appliances, cabinets, flooring, windows, etc.

How much you pay depends on the work you want/need done.

[Li Lu]

Quote from @Dorene Mangels-Bacalhau:

21k for 24units as in rental apartments did I understand that correctly-is that just a proposal of ideas? That seems low if that’s to include furniture for such a massive resort. If you need everything from, dishes, bedding, bath linens, furniture (bedroom, LR, Dining and accessories, art & window coverings, appliances, electronics). A modest 1BR apartment needing everything new could run you $8-10k ea…if you are sourcing from flea markets or FB market for used stuff I still think under $1k per unit it probably low unless you can DIY everything to pull off your design atheistic.

It is just a proposal of ideas furniture/minor remodeling not included. Thank you for giving me rough idea about 1 BR’s range. My budget for 1 BR is 10k. 

[Bruce Woodruff]

That sounds about right - for advice only..... Of course you'll have to then purchase all the products and materials.

[Andrew Steffens]

Quote from @Li Lu:

I recently closed a building with 24 residential units and it is more than 100 years old.

I have talked with a designer/architect about interior design.

His quotation is around 21k for all the units.

Is the quotation reasonable?

I remembered I saw one of the posts that said the budget is around $1000 for an apartment.

Please share your experience. 

Much appreciated!

 This price seems fair - many of our designers we have worked with charge around $2-3 per sqft.  We asked for that model as opposed to charging a premium on items bought to not enrich them to spend more.

[Scott Mac]

They will probably turn out beautiful, and might keep you from making costly mistakes.

Don't be afraid to ask about cheaper options, for instance a lighting fixture for $250 gets expensive when you need one for every unit.

Maybe there is a close alternative for $35.

Good Luck!

[Michael Baum]

Hey @Li Lu. So it is just the design advice which makes more sense.

I agree with what @Scott Mac said. There is always a nice alternative to the $250 light fixture or $3000 bedframe.

24 units is a big project so I would do it in stages if you can. Design and buy something like 6 units at a time.

Are you going to do entirely STR in there or a mix of STR and LTR?

[Li Lu]

Quote from @Michael Baum:

Hey @Li Lu. So it is just the design advice which makes more sense.

I agree with what @Scott Mac said. There is always a nice alternative to the $250 light fixture or $3000 bedframe.

24 units is a big project so I would do it in stages if you can. Design and buy something like 6 units at a time.

Are you going to do entirely STR in there or a mix of STR and LTR?

Hi, Michael
Thanks a lot for your response!
In Chicago for multi-family buildings you can only put maximum 6 units as STR.
I will put the rest 18 units as MTR/LTR.
If the Airbnb project works I might start to get more single family house deals for STR only. 
Again, thank you for your response!

[Michael Baum]

I think that is great @Li Lu! My personal opinion would be to focus on the LTR units first. They will take the least amount of work to get ready. Get them rented so cash starts coming in. Then move on to the STR. I am not a big fan of calling it MTR. There is really no difference with a mid term vs a long term. Yes the time is shorter, but you still need all the same info and a rock solid lease for anything over 30 days.

[Li Lu]

Quote from @Michael Baum:

I think that is great @Li Lu! My personal opinion would be to focus on the LTR units first. They will take the least amount of work to get ready. Get them rented so cash starts coming in. Then move on to the STR. I am not a big fan of calling it MTR. There is really no difference with a mid term vs a long term. Yes the time is shorter, but you still need all the same info and a rock solid lease for anything over 30 days.

Thank you so much, Michael!
I was thinking the same here. Listing most of the LTR first and using the cash flow for STR. Thank you for backup my original idea!

[Michael Baum]

Coolio. Keep us posted on how it goes. Post some pics of the place so we can see. Thanks!

[Dewayne Reid]

Quote from @Li Lu:

I recently closed a building with 24 residential units and it is more than 100 years old.

I have talked with a designer/architect about interior design.

His quotation is around 21k for all the units.

Is the quotation reasonable?

I remembered I saw one of the posts that said the budget is around $1000 for an apartment.

Please share your experience. 

Much appreciated!

 That sounds reasonable. 

[Li Lu]

Quote from @Michael Baum:

Coolio. Keep us posted on how it goes. Post some pics of the place so we can see. Thanks!

 Will do!

[Jonathan Klemm]

Hey @Li Lu - Congrats on your purchase!  Curious about which Chicago neighborhood it's in?

Is the architect's quote only including interior design or also plans & permits?  That doesn't sound unreasonable for plans & permits, but what does the scope of the interior design work include?   Layout, material selection, and supplier leads?

[Li Lu]

Quote from @Jonathan Klemm:

Hey @Li Lu - Congrats on your purchase!  Curious about which Chicago neighborhood it's in?

Is the architect's quote only including interior design or also plans & permits?  That doesn't sound unreasonable for plans & permits, but what does the scope of the interior design work include?   Layout, material selection, and supplier leads?

Hi, Jonathan 
the building is located near uptown, very close to red line.
The architect/designer offers permit/plans but I don’t think we need any permit for the interior design. 
Yes, he offers layout materials selection and supplier’s lead. He also gave me some advice to find some local furniture warehouses with huge discounts. 
So far I think he did a great job! And will send the the pictures when the project gets finished.

[Jonathan Klemm]

Sounds like you found a good firm to work with @Li Lu!  Look forward to seeing the end product.  

Are you planning to buy more multi-family buildings here in Chicago?

[Li Lu]

Quote from @Jonathan Klemm:

Sounds like you found a good firm to work with @Li Lu!  Look forward to seeing the end product.  

Are you planning to buy more multi-family buildings here in Chicago?

I will keep you posted when it's done!  Yes. Still working with the loan officer and searching for properties.