There are two legal ways to increase your wealth:
1) Keep more of what you have (e.g., tax strategies, rehab efficiencies, expense reductions, cost savings)
2) Add value to something (e.g., a real estate investment, stocks, bonds)
Let’s focus on those hacks that will specifically add value to your real estate investments.
The most obvious is certainly those things that will bring your property back up to standards. We have to do the obvious things such as:
Those items I’ve listed, and others like it, are no-brainers. But how do we do things that really add perceived value? We make it pretty!
Now, to get the property sold, or to get it rented immediately, there are specific things you can do that really make a difference (notice the emphasis on kitchen and bathrooms!):
What if you want to really make your property stand out on the market? What if you want there to be no question as to what a great house this is in the buyer/renter’s mind? What if you want top dollar? Try these inexpensive upgrades!
We, as investors, need to make the rehab fit our strategies. If we want to rent the property, you probably won’t add as many upgrades but you still want it attractive enough to attract good tenants and higher rents. If you are looking to sell and you need to get that property noticed, you should add as many of the upgrades as possible within your budget, especially the visual upgrades.
I hope this brief list has got you thinking creatively about how can pump up the value of your next project!
Bill Manassero is the founder/top dog at “The Old Dawg’s REI Network,” a blog, newsletter and podcast for seniors and retirees, that teaches the art of real estate investing. His personal real estate investing goal, which will be chronicled at olddawgsreinetwork.com, is to own/control 1,000 units/doors in the next 6 years. Prior to that, Bill and his family lived in Haiti for 11 years as missionaries serving orphaned, abandoned and at risk children.