Basic Cosmetic Rehab for Rental Property or Multifamily Rental Property

[Eric Dufault]

Hey Everyone,

I'm new to the site and so far have been blown away by the amount of input everyone who has experience is willing to share with someone like myself. Thank you for that. I'm in the housing market looking at multifamily rental properties and am finding a lot of value in homes that are outdated and need to be updated. I've demolished to studs and rennovated one foreclosure in the past and can say that I am somewhat confident in my ability to perform a cosmetic rehab ie. new sheetrock, flooring, cabinets, appliances, etc. I do have a few questions as to what you feel are solid investments in the above if I am looking to hold a property long term as a rental.

1) What upgrades improve the price you can ask for rent?

2) What uprgrades/materials should I be looking into doing if I plan on turning a project into a long term rental property?

3) What type of improvements should I be comfortable doing myself vs contracting out besides electrical/plumbing/HVAC?

4) What do you look for in a home that could be a successful cosmetic rehab or even as a flip?

5) What tools should I invest in if I plan on doing this every couple of years?

I understand these are broad questions but any information or direction you guys could provide would be appreciated. Thanks for your time and have a great day.

[Aaron Montague]

1) What upgrades improve the price you can ask for rent?

Paint is probably the best. Simple and "sorta" cheap.
Adding a half bath is always good.
Insulation means lower heating bills, make sure you sell this during tours.
Quality, private outdoor space.

2) What uprgrades/materials should I be looking into doing if I plan on turning a project into a long term rental property?

Depends on the neighborhood.
Boston/San Fran/Austin - Granite Counters, High End Lighting, Outdoor Kitchen
Rutland, VT (lower end) - Stuff that is easy to replace

3) What type of improvements should I be comfortable doing myself vs contracting out besides electrical/plumbing/HVAC?

I do demo, framing, painting, tiling, floors, gutters and cabinets. I contract out the rest. I'm working on my electricians certificate at the moment.

4) What do you look for in a home that could be a successful cosmetic rehab or even as a flip?

Level floors, newer roof, newer hot water heaters, newer furnace, newer HVAC and solid foundation.

5) What tools should I invest in if I plan on doing this every couple of years?

Circular Saw
Chop Saw
Table Saw
Cordless drill with 4 back up batteries and 2 charging stations
-US bit set
-Metric bit set
Hammer
Sledge Hammer
Screw Driver Set
And then start buying specialty tools as you need them. Renting is also a good idea if it's a tool you'll only need once every 4 years.