Findlater hopes the renovations will boost the property's potential rental yield and, in three to five years, its resale price.
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The rental yield is now only about 2.6%, compared with a 4% yield for shares, which does not make property especially alluring.
ECONOMIST: Property prices
In Britain the rental yield on arable land fell from 3.4% in the second half of 2003 to 1.75% in the first half of 2011, according to the Royal Institution of Chartered Surveyors.
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The net yield on rental housing is less than this as the landlord must pay for insurance, taxes, repairs and vacancy time.
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The rent-ratio in most US cities is now less than 10%, which means that rental housing has a current gross yield of more than 10%.
Right now, Mr. Dixon says his fund is earning a yield of 7% on his rental portfolio after accounting for operating expenses.
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