09/25/2022
Here is an example of maximizing unused space to its full potential in a multi-family property. π’
This was a gigantic attached garage in a 5-unit building. We converted it into a huge loft-style studio apartment by pouring a new concrete floor, adding heating, plumbing, bathroom, kitchen, lighting, and replacing the garage door with a wall with egress windows.
This space now rents for $1,000 per month and has added $70,000 to the building's value. We could have built bedrooms in this apartment (and we still might in the future if the circumstances warrant it). But, since we have a pretty high demand for rental units in our area and since we knew that a nicely remodeled studio will rent well, spending more money on adding bedrooms didn't seem like it was worth it.
Adding units inside of existing building space is one of the most cost effective and profitable ways to add value in multifamily real estate! ππ€β