How Improving Properties Built In The 1920's Can Yield A Great Investment Return.
(Above a recent renovation completed by Prosper Cleveland)
When people think of homes from the 1920s, they often think of “Great Gatsby”-esque mansions and Art Deco designs. But, the reality is that the majority of the homes from this era are rather plain. Wood shingle siding, small kitchens, and low pitched roofs dominated the housing boom post World War I.
While these properties may lack the functionality of newer homes, they often are located in more desirable urban areas which can generate a higher rental yield. So, rather than demolish these classic homes, the Prosper team takes the time to introduce new features and create functional spaces. Ahead, find three popular improvements Pro
per Cleveland incorporates into any of its historical properties.
Open Up Walls
At Prosper Cleveland we have one rule. “If it’s not load bearing, it comes down.” Removing non-functioning walls brings new life into a space. One of the walls in these older homes which we normally remove are the walls separating the dining room from the kitchen.
With these walls gone, improvements like center islands or serving ledges can be added to the property and increase marketability to renters.
(Opening up walls between kitchens & dining rooms can increase the natural appeal of a space with natural light)
Restore Hardwood Floors
Although preserving original hardwood floors does require a higher investment of time and capital, it also can generate a greater rental yield.
As an added bonus, older homes can feature inlay designs which create a natural decoration in the spaces.
Although laundry income can be a great revenue generator for multi-family properties, properties with less than 6 units generate a higher rental income if they feature in-suite laundry. However, this feature generates the most revenue if the tenant is responsible for their own utilities.