Rehab a unit in order to drive rental rates and ROI

[Gregory Schwartz]

I am mid-way through a unit rehab. This isn't my first rodeo, but after 5 rehabs I'm still learning and still in awe of how quickly the cost adds up. I have to keep reminding myself it's worth it because it is worth it!  

My business model is to buy and rehab 1980s fourplexes in order to increase rents by $150-200. As a buy and hold investor I'm looking to increase rents but also limit future expenses. 

These units get new cabinet doors and drawers, new flooring, new paint, upgraded countertops, new appliance packages, and all new lights and fixtures. My goal is to take a worn-down 80's apartment and bring it to the 21st century. 

At the same time, I upgrade as required hot water heaters, plumbing, doors etc. 

So what does all this cost me... so far my average rehab for a 2 bedroom 1 to 1.5 bath 1000 sqft apartment has been 8-15k. I'm looking for at least a 15% ROI on my rehab money and an increase in the quality of my tenant's lives.

What do you spend on your average unit upgrade? Do you install LVP and quartz? Do you do it yourself or hire it out?

If you're in Bryan or College Station, TX come out to our meet-up where we'll walk my most recent project and break down my budget. April 4th at 7-9pm  1902 Woodsman Unit B in College Station, TX