#302: The Importance of "Leading With Your CapEx" and Why You Should Over-Renovate Units Early In A Hold Period
Description
In this solo episode, Axel breaks down one of the most overlooked aspects of multifamily ownership—the timing of your CapEx spending. Many investors wait until systems fail before addressing roofs, heating, or parking lots, but Axel explains why this “defer and react” approach can actually hurt you long-term.
He shares why leading with your CapEx, creates a more stable operation and more benefits around it. Axel also discusses why you should consider over-renovating one of your first few units to test what the market will bear and adjust your strategy early on.
This episode is packed with practical, experience-driven advice for anyone managing value-add or long-term hold multifamily assets.
What You’ll Learn in This Episode:
- Why waiting to spend CapEx until systems fail can backfire
- The operational and financial benefits of leading with your CapEx
- How proactive CapEx planning simplifies long-term cash management
- Why early CapEx investment can subtly boost resident quality and retention
- How to test the market by over-renovating one early unit to gauge demand and pricing
Are you looking to invest in real estate, but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners provides investment opportunities to passive investors looking for the returns, stability, and tax benefits multifamily real estate offers, but without the work - join our investor club to be notified of future investment opportunities.
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