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July 21, 2008
South Slope Renovation
This apartment used to Rent for $900.00, I put $40,000 into it & now I am renting it for $1,800.00 per month. My contractors did an excellent job :)
Comments
Who were your contractors? Did they also do the floor?
Posted by: premadas at July 21, 2008 11:16 PM
ACR General Contracting, Inc.
(917) 573-3304
Alfonso
Yes they did the floors, they did everything from Floors to Plumbing & Electric. give me an email address if you want more pictures.
Posted by: caseycrespo at July 21, 2008 11:33 PM
$40k investment to get $900/month increase? I am not familiar with how this works, but is this a good expectation for ROI?
Seems like it is a little low on the upside (though i am admittedly ignorant). Does anyone have a sense of the norm?
Glad you are happy though, and even happier you found a decent contractor.
Posted by: downtown_denizen at July 22, 2008 12:04 AM
Well for every $4,000.00 spent you should expect an can get an increase of rent of $100.00 per month, so i'd say im pretty much on track, with annual rent increases I'd say its a good investment. They re-did all of the plumbing, electric, leveled the floors by replacing / joining the joists & supporting the beams with new posts in the basement, everything A-Z is new. In reality, the necessary replacement of some joists & post additions in the basement cost me roughly $8,000.00, so construction of the apt was about $32,000.00. So in the end i am happy for the great job, the increase in rent, the additional structural support to my property, good tenants and no court with contractors :) You've got to spend money to make money. The building is paid for, as soon as I have another empty apt I am going to renovate. We are "original" Brooklynites raised in park slope, we paid very cheap for our properties in the 1970's & 1980's when Park Slope was a gang infested neighborhood ghetto that no one was interested in. So a lil spent here & there doesnt hurt.
Posted by: caseycrespo at July 22, 2008 12:27 AM
Based on the $32,000 allocated to the unit, the additional $900 per month gives you a payback of less than three years! A great example of why well thought out real estate investment is still one of the best investments!!!
Posted by: daveinbedstuy at July 22, 2008 9:09 AM
Congrats! I'm just sad you didn't keep the tin ceiling :(
Posted by: hangonsloopy at July 22, 2008 10:04 AM
Thanks Dave in Bed Stuy, I look at the big picture when it comes to investing some money.
I was sad to see the tin go also, but the ceiling was very damaged & would cost more to repair than what it was worth. In some higher end apts I would consider spending the extra cash. I was investing in straightening out the floors & didnt want to see a slanted ceiling. Oh well, what can you do... At least now I have straight lines.
Posted by: caseycrespo at July 22, 2008 6:14 PM
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