How do I make money renovating apartment buildings?
The term renoviction is common amongst modern age media outlets. This negative connotation is the wrong perspective on the process that the older stock apartment buildings in need of modernization are undergoing. The baby boomer generation that the typical 1950’s and 60’s apartment building was constructed for wanted basic and simple accommodation with the objective of moving out and establishing themselves young.
Millennials and Gen X have vastly different preferences than their parents. They are living at home and enjoying those luxuries longer. This is largely due to affordability and post-secondary education. When they finally are ready to move out they typically are educated with a post-secondary degree and have become accustomed to the quality of living at home in more upscale accommodations. Thus they expect to maintain these same luxuries when they move out and are willing to pay for it.
New tenant profile opportunity
This presents a new opportunity to take advantage of this expanding rental pool of modern renters. By modernizing a building an old building you can significantly reduce the cost that new construction would require and still provide upscale residents that are in high demand. Old buildings such as Manoa Yew even has the character finishing’s that create a unique feel to the property that can be refurbished into a modern hipster appeal. Look through this investment and think about how you can maximize your opportunity to turn a chapter on Manoa Yew and create modern living, with character feel, that will inevitably bring strong cash flow.