Author Topic: Multiplex investments: aren't costs for remodel higher?  (Read 789 times)

Bearded Man

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Multiplex investments: aren't costs for remodel higher?
« on: November 17, 2015, 07:34:23 PM »
Let's say one buys a four-plex, each unit with two bathrooms. You also have four kitchens. This four-plex was purchased for 350K and you get 1K rents per unit, per month.

After all Normal operational expenses you net 1K a month. But now it comes time to update the units. Bathrooms and kitchens are far more expensive than empty rooms, and you have 8 bathrooms and four kitchens... I'm not Bob Villa, but I have no issue doing flooring, paint and trim for a bedroom. Bathrooms, maybe. Kitchens? Leave it to a pro, I've seen the results of the DIY jobs from houses I've looked at. Doesn't this become ridiculously expensive? You would have to factor in a higher cost for expenses. Perhaps you are only making .6K per month allotting for this. Are MF properties really that much better than single family homes? Heck, I'm starting to think SFH's with only one bathroom are the way to go to minimize expenses. Bedrooms are what bring in income for a rental, no?

Papa bear

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Re: Multiplex investments: aren't costs for remodel higher?
« Reply #1 on: November 17, 2015, 08:20:20 PM »
I have units near a college campus.  There, the number of bedrooms is typically what increases rents.  This has started to change a bit as more students want their own bathrooms.

Agreed that costs are higher when remodeling. A 4 plex "should" return more than equivalent sfh with equal number of bedrooms.

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