CalculateRealEstateROI

Multifamily

What is value-add multifamily?

Acquiring underperforming properties and improving NOI via rent increases, expense reduction, and capital upgrades.

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

Direct answer

Acquiring underperforming properties and improving NOI via rent increases, expense reduction, and capital upgrades.

Expanded explanation

Typical levers: $5k–10k unit renovations supporting $150–250/mo rent bump, RUBS recapture, management replacement, expense audits. Targets 30–50% NOI growth over 3 years.

Examples

  • Unit upgrade $7k → +$200/mo rent → $1,800/yr NOI add → +$36k value at 5% cap.

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