When managing multifamily value add projects, protecting your investment is paramount. In a recent video I created in Houston, I discovered a concerning practice by a previous owner of an apartment complex—painting over wood rot. While this may provide a temporary aesthetic solution, it poses serious long-term risks to the property and your investment strategy.
During my inspection, I pointed out areas where wood rot was present, emphasizing that failing to address these issues can lead to the spread of rot throughout other areas of the exterior walls and windows. Not only does wood rot compromise structural integrity, but it also leaves the interior of the units vulnerable. Moisture can seep into the exterior wall, leading to potential water damage inside the apartments and the growth of mold, which can significantly impact tenant health and satisfaction.
Moreover, this situation is compounded when there are cracks in the siding. If these cracks remain unsealed, they can similarly allow moisture to enter, exacerbating the risk of damage. As part of a solid multifamily value add strategy, it is crucial to seal any areas of the exterior wall to keep the elements out. A strong caulk can effectively fill gaps, and once it dries, it should be covered with high-quality exterior paint to protect against further wear.
If you encounter rotted wood, it is essential to replace it with new materials to prevent the rot from spreading. By addressing these issues proactively, you not only protect your investment but also enhance the value of your property, ensuring it remains a desirable option for current and future tenants.