On the other hand, sometimes rehab is essential to keeping the multifamily property headed in the right direction. Taking the property on a unit-by-unit basis could be a great way to save time and money. Check every inch of the property you own or are thinking about owning and develop a specific rehab plan and stick to a budget. This way you can have the best of both worlds. You can make improvements that increase value while not totally renovating a multifamily property.
Projects like this could take months or years depending on the contractors and the scope of the work you want completed. You could lose tenants and doom the property. Smaller changes may even allow the tenants to stay in place or only leave their unit for a few days or a week at most. Take everything into consideration when you are trying to figure out what your multifamily property needs in terms of rehab. Maybe the best thing is to leave the property exactly the way it is so it can continue to properly cash flow and make you money.
Don’t Be Afraid to Ask for Help
Having partners, companies, and contractors you can rely on in the real estate investment space is a game-changer. When it comes to multifamily properties you may find yourself relying on these relationships more often until you get more comfortable with managing these larger properties. A potential misstep can be when investors think they must do all this work alone.
First, partners are huge in this business. More capital, more experience, and more resources are just some of the reasons partners can make a difference in the industry, especially when considering multifamily properties. An extra set of eyes to find more properties is a big advantage as well. Experience in the industry to deal with any potential issues that arise during the buying process or while overseeing the property is big too. An infusion of money from a partner at just the right time can secure a multifamily property with bidders swarming when the property goes on the market. No partner? Good business relationships will come in handy then.
Property management companies are the first in line when it comes to important business relationships in the multifamily investment space. They have expertise when it comes to handling rent payments, overseeing maintenance projects, and resolving tenant disputes. These companies can be a lifesaver if your ambition as an investor includes multiple multifamily properties. You will have a lot on your plate on a day-to-day basis so having that company in place will help you feel less stressed as you look toward other investor-specific duties.