How to Renovate a Houston Multi-family Apartment Complex Like a Pro

Research is Everything

In the case of 4114 Lamar, I discovered the property by thoroughly researching the Houston MLS. The building was in total disrepair and vacant but its proximity to downtown Houston was appealing. Some other attractive characteristics about the property included: ?        An up-and-coming neighborhood: With grocery stores, coffee shops, and restaurants just minutes away, this neighborhood was on the rise. Tenants demand amenities now more than ever so choosing multi-family apartment complexes in busy districts makes total sense. ?        Proximity to schools: Less than two miles from K-12 schools made 4114 Lamar an excellent choice. Properties near Houston schools sell and rent higher than their competition.  ?        Easy access to transit: Whether commuting or using public transit, 4114 Lamar presents an accessible location to multiple bus stops and highway routes. When submitting my bid on the property, I knew various factors were in my favor like time on the market and the fact that I would enter the transaction without a mortgage. After some negotiation, I was able to secure the property for a substantial discount allowing my team and I to begin renovating quickly. ?        Pro Tip: Cold calling and door-knocking simply don’t work when trying to find your next multi-family investment property. Instead, consider building relationships through brokers and other centers of influence that understand your brand’s particular niche. Whether your team prefers total rehabs or turn-key projects, your network should know you’re the one to call when a suitable property hits the market. 

Renovation Plan

One of the biggest opportunities 4114 Lamar presented was an upgrade to its parking situation. Parking expansion is a relatively minor, cost-effective upgrade to make to an investment property yet the return on the investment was huge. 4114 Lamar had a large parking-to-unit ratio with a gated entrance giving me the chance to gravel and secure an otherwise muddy, shabby lot. Thankfully, the brick exterior was solid and able to be salvaged with only minor updates. New windows, doors, and flower boxes increased exterior curb appeal. From there it was a total interior overhaul including plumbing, electric, A/C, and water lines. Key luxury features were added like laminate flooring and granite countertops to create a beautiful living experience. My team and I worked tirelessly but the finished project was truly amazing! The once run-down spaces had been transformed into neat, tidy, updated 2-bedroom, 1-bathroom units ready to be rented. Common spaces were welcoming and secured. ?        Pro Tip: Future tenant demographics are important when planning a renovation. In this case, an up-scale remodel made sense for this Houston neighborhood. Multi-family apartment complexes in other areas might only require sensible updates like paint and carpet. 

The Numbers Behind the Property

The seller was originally asking 188,000 for this property but I negotiated and purchased it for 180,000 After renovation expenses of just under 165,000, my total investment with holding cost was 356,000. I marketed and sold the property for 545,000 netting a profit of 178,000 before Uncle Sam. The next owner will enjoy a turn-key income producing investment property that should generate approximately 4,700 gross income monthly.    

Are you considering a Houston real estate transaction?

Trinh Nguyen has a tremendous amount of experience not only buying and selling but also managing and renovating income producing properties. She is one of Houston’s top-ranking realtors and property managers ready to guide you through the process. Don’t trust just anyone, let Trinh’s 700+ successful transactions speak for her. Contact Trinh and her team today or call her office at 832-356 TRIN !