Your multi-family investment property stands to be a significant stream of passive income for you. In order to make the investment worth the time and money, however, you’ll need to put some work into remodeling the property first.
The type of remodels you decide on will depend heavily on your renovation budget. Whether you have a lot of cash on hand or you’re working with a tight budget, you’ll be able to remodel your multi-family investment into a desirable property by focusing on a few key things. Read on for five ways to turn your multi-family space into the hottest property on the block.
1. Pick the Must-Haves for Your Property
It’s too easy to get caught up in the various aspects of remodeling. Start the renovation process by figuring out what your must-haves are. These include any upgrades you need to do in order to sell your property. These upgrades are the essential things required to bring your property up to code.
If you hope to generate additional cash flow from your multi-family property, be sure to consider tailoring your remodels to what future teammates would want.
2. Renovate the Kitchens
A remodeling plan of a multi-family property should always include the kitchens. New tenants always find that a redesigned kitchen is a great investment. You will see over 100% ROI after remodeling this room.
When it comes to kitchens, this area should always see the most money out of the remodeling budget. Other rooms like the living room and bedrooms can be updated with fresh paint and newer furniture, but the kitchen needs the newest appliances to make tenants or owners feel at home.
Go for simplicity and functionality when you are aiming to redesign the kitchen. Popular plans for today’s remodels include open layouts, neutral color schemes, stainless steel appliances, wood floors, and stone countertops. Consider these choices as you work to redesign your home.
3. Redo Your Bathrooms
Don’t skimp on luxury amenities when designing the bathroom. Today’s renters are excited about steam rooms, heated floors, walk-in closets, and automated toilets. Most homeowners between 30 and 45 aren’t fond of bathtubs, so be sure to use this to help you determine your new bathroom plan.
4. Amp Up the Curb-Appeal
Spending time and money to amp up the curb appeal of your multi-family property is essential. Oftentimes, potential renters or buyers will make their first judgments of your property based on the curb appeal alone. Focusing on factors like landscaping and the exterior of the property can increase your market price by 20%.
In many cases, something as simple as a fresh coat of paint can make your multi-family property much more desirable to buyers. Start by analyzing the worst and best features of the property before working to redo its outer appearance. Note various issues like if the paint is chipping, the plants are dying, the rain gutters are full, the siding is dirty, and anything else you immediately notice about the property.
5. Focus on Effective Lighting
Having a well-lit property is another way to encourage renters and buyers to give your property a chance. As you remodel your multifamily investment, be sure to use lighting as a way to advertise the property. Install decorate lamps and other light fixtures at the front of the property.
Rehabbing your multifamily investment property is a necessary step if you want to see a positive ROI for your purchase. Use these five tips to kickstart your remodeling process. By making key choices when it comes to redesigning rooms and renovating the property, you will find your investment was worth it.