Best ways to drive value into a 4-plex?

[Brian LaPorte]

What are your opinions on the best ways to drive value into a 4-plex? If I’m looking to make improvements in order to refi and pull my capital back out, is it better to simply improve the NOI? Or general property improvements and aesthetics that an appraiser will see? I feel like its a combination of both, and maybe other factors like the surrounding neighborhood value Comps for these aren’t near as easy as with SFR’s, at least not in my market. Brian

[David S.]

@Brian LaPorte 4-plexes are considered residential real estate which is 4 units are less. Therefore, in residential real estate, value is driven by comps. You can make the building look like the Taj Mahal and double the rents but you will only get a small adjustment on your appraisal (market value), perhaps 5 to 10 thousand, whatever mood the appraiser is in. If you move up to 5 units or more, you would drastically increase the value by increasing the rents.