Multi family home renovation has become a popular buzzword in the real estate industry for multiple reasons. Namely because it is a smart investment move. Multi family home renovation is the process of renovating a property that includes at least two separate living units that have their own bathrooms and kitchens.
By considering a multi family home renovation the value of the property has the potential to skyrocket. A few examples of multi family properties include buildings with a multi-units of two or more, larger scale apartments and homes with a basement, garage converted to a living space or an attic.
The different types of multi family homes are defined by the number of entrances or doors they have and can be categorized by either duplex, triplex, fourplex or townhouse. Often these dwellings have shared laundry spaces or outdoor areas.
A main question when considering renovating your multi family property is how will your multi family property retain occupants? In short, it's important to know your audience and the times in which we live (hello post pandemic world). When updating or renovating your multi family space consider:
Clever utilization of space
Wellness spaces like a garden or outdoor space
Making rooms larger if possible
Considering these upgrades will not only allow you to charge more for rent, but retain occupants and add more competitive edge against other rentals.
There are some great benefits of investing in a multi family unit. Some include more cash flow, less vacancy risk, increase of property value and more flexible financing options. A couple disadvantage to consider include square footage cost will most likely be higher, potentially more costly insurance premiums and limited exit strategy in the event you wish to sell the property in the future.
San Francisco and the Bay Area in general is the perfect location to invest in a multi family unit arrangement. The reason is due to location, property value and the need! Many millennials are ok with forgoing larger spaces in the suburbs for more metropolitan areas that are walking distance to desirable employment options, entertainment and other interests.
It's no secret the real estate in San Francisco is astronomical and only a select few can actually afford to purchase there. If you find yourself in the position to purchase even a single family home in the Bay Area it is worth a thought to consider renovating it to a multi family option to reap the benefit of a higher return in revenue.
A burning question that might be popping up now is how much does multi family renovation actually cost? Well there's no easy answer to that question however, according to recent cost estimates multifamily apartment construction currently costs between $64,500 to $86,000 per unit. The average general contractor fee in the U.S. is about $125 per square foot, the mason, excavator, and carpenter fees at $70/hour, painters at $20 to $35/hour, plumbers at $45 to $65/hour and electricians a $65 to $85/hour. However, in high metropolitan areas these numbers are bound to be higher.
If multi family renovation is the right decision for you then a good place to start is finding the right general contractor to help you make and implement a renovation plan. A2Z Remodeling Inc. is a reputable and experienced contractor in the Bay Area who can help with your future multi family renovation project. Contact them here! They are literally a one stop shop and can help design a plan for the building's interior and exterior, unit plans, furniture layout, color schemes, ensuring everything is up to code, and providing job site and vendor management.