Localfund.com - All about Fund and Investment
*Home>>>Return Investment

Return on Investment for apartment upgrades?


Question: How much can we spend on the individual apartments to accomplish a 25% return on investment.

Facts:
We have a recent rent survey which gives the following info on our apartments
Single rent is $925
1 bedroom, range is $1100 to $1515 and the average is $1260
2 bedroom range is $1380 to $1700 and the average is $1490.00
To be safe and because the higher rent is from superior buildings, I suggest that we aim for 87% of the high as our target after upgrade.

Presently we are getting $875 for single, $1125 for one bedroom and $1350 for 2 bedrooms.

Up grade target is granite tops, new sinks and faucets and install dishwasher and wall air and ceiling fans.
Cabinets have to be either modified or replaced to accommodate dishwasher.

The breakdown is 4 singles, 30 one bedrooms, and 6 two bedroom

So, once more, the question is how much can we spend on each apartment to accompplish a 25% return on investment for the upgrades?

Thanks!

I believe that much more info. is required do the calculation.
If I under stand correctly that you want to earn 25% return on money spent on upgrades.

What I will do is, find out how much it would cost you to do upgrade. Add 25% of it to the current return and figure out new rents to get that return.

Or in simple term whatever it cost you to renovate 1 apartment, divide 25% of that cost by 12 ( months ) and increase rent by that amount.

Tags
  Startup Capital   Sector Fund   Seed Money   Seed Capital   Return Investment   Real Money   Real Estate Investment   Raise Capital
Related information
  • **Help*!!* How Do I Compute my Annual Return on Investment?-This is for a seven year period??Help!!*?

    The annual return can not really be calculated by dividing the total returns by number of years. The correct method is here: Your Initial Investment : 4000 Current Value of Investment: 10196...

  • Percentage of return on investment in subletting a mobile home?

    Lonnie Scruggs has a great book on the subject called Deals on Wheels. It costs about 30 bucks and talks about mobile home investing. The book can be found at creonline.com . This is another great...

  • The return on an investment should cover at least (Ke)....?

    Calculate out the NPVs of both decisions, shutting down immediately. You have to include the capital gains tax (if any) for the salvage value. Then, calculate another one with the project going f...

  • Anybody knows any NO RISK INVESTMENT/ fixed-income investment/ fixed-return investment?

    well risk is involved in everything but i think mutual funds is an option or real estate

    ...
  • In rate on return investment ratio, why is the interest multiplied by (1-tax rate)?

    because you will be paying taxes on your interest earnings (as well as capital gains, btw) when you file your taxes

    ...
  • Hight return investment?

    If you consider 49%p.a. high enough, then you may want to consider a particular investment system. One of the best systems I have found that has generated such returns is the Stocks Monthly syst...

  • What is a reasonable investment return average?

    To my mind 7.62% is too low.... I am getting 2% interest every month (APY 24%).

    ...
  • I need a simple formula to figure the return on investment for some stores that were purchased?

    There are many ways to figure the ROI but visit the web site at the following url ...

  •  

    Categories--Copyright/IP Policy--Contact Webmaster