We put about $250,000 into renovations, which paid for a modern tile façade, decorative wrought-iron security gates, new low-e dual-pane windows and a courtyard redone with stamped concrete, landscaping, a gas BBQ and a fire pit. Inside, units got tile flooring, updated bathrooms and modern paint schemes. We also added gated resident parking and 24/7 video surveillance.

After the renovation, gross potential income rose from $273,600 a year to $453,600 a year ($37,800 a month), an increase of about 66%. Net operating income grew from $158,266 to $249,480, about 58%. The property is 100% occupied with a waiting list and is now valued at more than $5 million. That’s roughly double the purchase price on a total investment of about $2.75 million.