Complete renovations for multifamily

[Danielle Huang]

Hi I found a 8 units deal in Dallas and the listing agent said it needs complete renovations to the studs.

The building is built in 1929 ish, the electrical system and interior needs all updates. The roof also needs work.

I have not done such a rehab before and what is your advices, I know people say your first renovation should be just some TLC

not complete renovations. But I am just curious to ask if it is a doable thing, what is your view on it?

Is 30K a unit a reasonable cost to complete a unit? Thank you.

[Bruce Lynn]

@Danielle Huang  My thought is anywhere in DFW I would probably be adverse to 1929 building that needs complete rehab.  There could be some good deals somewhere, but that sounds like a big project.   That's not common in Dallas.  Probably everything needs updated, not just systems....think about insulation for example.  Most of these are also wood siding exterior so require more than average paint for example.  Some places like San Francisco or Europe 1929 might be acceptable, here that is the rare exception.

The other consideration here for a building that old, is that it is a building that old....so normally unusually small apartments and small closets and some features you just can't fix.

I would really consider what your rental market is on that.  Who is your target?  What will they pay?   Then do the financials make sense?