What's the smartest move here?

[John Zuch]

Hi everyone! I love the creativity and informativeness of the responses to each question posted here. So, folks, I ask you to help my husband and I through our decision making process....

Quick Facts:

We are rehabbing an apartment building with 6 units. It happens to be located basically on the campus of a local college. They had been interested in acquiring the property themselves, (they developed in a downtown location and are a little bit landlocked), but had begun a huge renovation on campus when the owner of the property finally considered selling. They dragged their feet long enough that he was tired of waiting and here we are! Right after we got it under contract, they contacted him wanting to do a walk through. They had originally been interested in having him do the renovations and then sell it to them. He's retiring, essentially, and just wants to be done with it.

That said, our current plan is to fully rehab one of the units and then approach the college and find out if they like what they see enough to sign some kind of contract...whether they want to buy, lease, etc. Otherwise, our plan is to finish the rest and then fill them with students ourselves.

None of the units currently have dishwashers and they have terrible washer/dryer placements. The washer is currently in the kitchen where a cabinet/dishwasher could go and the dryer is like 10 feet away against the dining room wall. My husband says that it is not possible to add a dishwasher if we don't move the washing machine (which will require jack-hammering up the cement floor and moving plumbing and all that -- we have a plumber friend who will help, but the cost and time involved will still be great) It might be worth mentioning that the college has said it was considering housing adjunct professors or married students there.

QUESTIONS:

Will the college expect to have dishwashers? Would that stick out like a sore thumb and severely damage our sale price if we leave that out?

Is it a must to move the washer purely for aesthetics and flow?

If the college won't sign a commitment after they see the first completed apartment, does that change our strategy, knowing it will now be a buy and hold college rental?

Any must do's or not necessaries that come to mind are welcome!

We have extensive residential remodeling experience - my husband and i are still learning what will and wont get us a return on our money...plus we don't always agree and welcome outside advice!

thanks everyone!

questions welcome!

[Jerry W.]

@John Zuch I agree with @Bill Gulley to ask before you spend the money to rehab. Another thing to consider if you have the room is put a laundromat in your building. The income from that can be nice, it is even possible you get college kids using it. it would also save space in your apartments.

You might also look at your highest and best use. Which clients would be willing to pay the most for an apartment located on campus? My guess is professors. They do not want to live in dorms with college kids, they do want to be close, they can afford more than college kids. Do your apartments with them in mind.