3 Incredible Ways to Increase Value with an Investment Property
Invest in Real Estate in a Smart Way
Having a positive cash flowing investment property is a wonderful thing for a real estate investor. It’s great to have your tenants pay your mortgage payments, and at the same time provide you with monthly cash flow. It’s greater still when you can leverage an opportunity to increase that cash flow ever more. How is this done you may ask?
There are some key improvements that can be done to an investment property that will assist in increasing its net operating income (NOI).
These types of enhancements are things such as…
- installing or replacing heating,
- heating, ventilation and air conditioning systems (HVAC),
- replacing old drafty windows with more energy efficient ones,
- changing a roof,
- adding a laundry facility or
- building privacy fencing.
Upgrades such as these are typically the most expensive improvements you may want to consider.
Changes that are aesthetic in nature are typically easier on the pocketbook then structural ones. They can go a long way to making your property look more visually appealing to tenants.
Cosmetic upgrades such as
- landscaping, and
- installing better lighting
All these help to increase the attractiveness of a property
Property management is a crucial element in the success of any investment property. Modifying current property management practices or bringing in a new management company is sometimes required to ensure the value of your investment continues to increase.
Some of these management improvements could be:
- fixing inefficiencies,
- providing better service to your tenants,
- dealing with trouble tenants, or
- improving marketing
These are all small yet important improvements that can go a long way to ensuring you have quality tenants that pay their rent on time. It also continue to contribute to your positive cash flowing investment.
Once you’ve learned how to become a savvy investor you will look at the performance of an investment property. You’ll then determine which improvements will make the greatest impact towards increasing the income and reducing the expenses. Making changes to a property just to make it look more visually appealing, may not necessarily generate more income. it could take away from your profits. So, be smart and choose your value-add improvements wisely.
If you want to learn more about how investing can benefit YOU, Contact us.
Remember, real estate doesn’t have to be complicated.
With Simple Acquisitions it’s smart and simple!