Multifamily Unit Renovations

Ricky Rosay's picture
Rank: Neanderthal | 2,868

What do you guys typically think of with respect to per door renovation estimates (interiors) on multifamily properties? Ie, what do you really get for your money in the following tiers? Obviously this varies market to market based on labor and material costs, but you get the idea:
$10K/door: get you XX (paint, carpet, light fixtures and some plumbing fixtures maybe?0
$20K/door: above plus counters and cabinets, plank vinyl flooring
$30K/door: above plus SS appliances

Comments (18)

Best Response
Feb 5, 2018

10k a door should get you all of the above

    • 3
Feb 5, 2018

What market are you in?

Feb 5, 2018

I'd generally agree, but also with the caveat that 10k wouldn't cover the labor and contingency. For all of the above, you're looking at ~$12k-$15k depending on MSA.

    • 1
Feb 5, 2018

thanks. socal market. surprised at the 12-15K estimate, I would have guessed $20-25K.

Feb 5, 2018

Ah, you'll be significantly higher there, but often times the premiums and scope of work being done in some Califronia assets is much greater than that of the Sunbelt. What age range are you looking at?

I put some anecdotal examples below which will hopefully :

  • Greystar is pumping $25k-$35k into a 1991 built deal in Sunnyvale. Shooting for premiums of $300-$400
  • I chased a deal recently in Orange County (2000 built), and was looking at putting around $18k into the units for a $250 bump. Miles off the mark on that one because people got much more aggressive that we were comfortable with.
  • Chased another deal in San Diego (2002 product) and was shooting to put around $18k into the interiors and was in B&F but wound up needing to walk away because of an environmental issue.

Hope that helps some.

    • 2
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Feb 5, 2018

20-25k = complete gut and remodel w luxury finishes

Feb 5, 2018

thanks guys--very helpful

Mar 12, 2018

@Ricky Rosay - is this a personal project or through your shop? Either way, how do you go about sourcing your GC and Labor?

Feb 5, 2018

Both...for shop, looking to back-check our internal construction estimates because I think they are far too conservative. We either self perform (usually for wood frame garden product) or do a third party GMP with invitations to bid based on a GC and fee proposal. For personal, looking to start syndicating deals on my own after locating an larger equity partner. I think you are as well....shoot me a message..

Mar 14, 2018

20-25k = complete gut with higher end finishes. Phx/socal market

Mar 12, 2018

All - What is the standard ROI one targets for an interior unit, value-add project?

In previous work with a REPE firm behind one of the largest value-add MF operators in the nation, I believe they were targeting about 15%-20%. It's been a few years so I'd be interested in hearing where people are at now.

Feb 5, 2018

we are way lower, closer to 8-10%

    • 1
Jun 10, 2019