All Forum Posts by: Mike Dusenka

@Mike Dusenka we renovate the apartment when a tenant move outs so they occur naturally. For example, with a 200 unit complex you may have 10 units vacant to renovate right away and then next month you may have 15 more leases that expire. For the expiring leases your property manager should work with the resident early on to see if they want to re-lease a renovated unit (one of the first 10 you did). This process allows you to maintain occupancy and solid income collections while you manage the renovation project.

@Mike Dusenka, what’s your strategy? Are you looking to rehab and refinance to extract the equity right away? Or are you renovating to bring units up to market rents as a buy and hold, leaving your equity in the deal?

It seems to me that the first option has much more urgency. When their lease comes due, I think you’d have to turn the unit. If you have a vacant unit you could offer to move your tenant to it while you turn theirs, provided the tenant is worth keeping, and with the understanding that rent is increasing to market rates. If you don’t have any vacancies or leases nearing expiration, are there any tenants worth buying out of their lease?

If it’s non-urgent, you might discuss with the tenants what renovations they’re willing to put up with, and what you’re willing to wait to do. Walk the unit and tell them your plans, maybe show them the renderings of a renovated unit, and discuss a strategy to get up to market rents.

Can you post what you decided to do and how it turns out? I’m working to get a small apartment building soon, and will likely face the same dilemma.

@Mike Dusenka I ask them if they are ok with the renovation and if they would be willing to enter into a new lease for an upgraded unit now.  Depending on what you’re doing most of them will be OK with it. 

@Mike Dusenka

 You're correct on the equity number. What's the time frame on this from purchase to refi? You may have a seasoning issue depending on the lender.

@Mike Dusenka

 You're correct on the equity number. What's the time frame on this from purchase to refi? You may have a seasoning issue depending on the lender.

Hey Blake,

Thanks for replying. I'm just trying to get my grips on the refi process if I have a private money lender pay for the whole deal.

@Mike Dusenka you should reach out to a few local banks to see what they need/want from a refi option. They may want you the owner to have “skin in the game” aka your own cash invested not just equity. Reach out to a few banks because someone should work with you without requiring your cash in the deal if everything else is ok. You can use a mortgage calculator to figure out your payment or ask the lender for a quote. Good luck.