CalculateRealEstateROI

Multifamily

What is a value-add multifamily play?

Acquire underperforming asset, raise NOI via renovation, retenanting, or expense reduction, refinance or sell at premium.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Acquire underperforming asset, raise NOI via renovation, retenanting, or expense reduction, refinance or sell at premium.

Expanded explanation

Classic plays: $5k unit interior renovation → $150 rent lift → $1,800 NOI lift × cap rate = $30k+ value created per unit.

Examples

  • 100 units × $30k value-add = $3M created equity.

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