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Alaska Real Estate - The Great Outdoors
Alaska is the biggest state in the Union and tends to be a take it or leave it proposition for relocation. For those choosing Alaska, the real estate market is a solid investment. Alaska Known as "the great land", Alaska seems like a harsh,...

Beat the Crowd when Investing in Real Estate
Copyright 2005 Peter Dobler We all are thinking about it and some of us are actually taking action and getting their hands on real estate investment properties. The longer the NY Stock Exchanges doesn't produce desirable returns the more people...

Kentucky Real Estate - The Bluegrass State
From lush bluegrass to the music of the same name, Kentucky is undeniably the bluegrass state. Fortunately, Kentucky real estate prices won't leave you blue. Kentucky When it comes to assumptions, leave yours at the door when considering...

Real Estate Marketing -- Integrate Your Efforts For Maximum Response
Integrated marketing sounds pretty scientific. Maybe that's why up-and-coming marketers get a glazed look in their eyes when the subject is mentioned. Truth is, integrated marketing is easy to understand. It can also do wonders for your real...

The Worst Real Estate Investment Strategy Ever!
It's true, You can make a lot of money by investing in real estate. Yet, many investors are not. And when you look at their real estate investment strategy, it's no surprise. The problem is that they have been brainwashed by the so called real...

 
Real Estate Rentals - Selling For More

Selling real estate rentals isn't like selling houses. You can paint a house, and get a little more because it looks nice. Rental properties, especially larger ones, are different, because they're bought by investors, who look at income more than new paint. Raise the income, and you increase value to investors.
Time to learn about capitalization rates. If investors in your area expect a capitalization rate of .08 it means they want a net return (before loan payments and taxes) of 8% on the purchase price. So if your three-plex generates $12,000 net income annually, they'll value it around $150,000 ($12,000 divided by .08). If you can make it generate $16,000, you make it worth $200,000.
More Income From Real Estate Rentals
Raising rents is the obvious way to boost income, if you can justify it. See what similar units are renting for. If your units are $60 below the going rate, you can raise the rents and not lose your renters. Increasing the rent $60 for three apartments means $2160 more net income annually. With a .08 cap rate, you just added $27,000 to the value of your property.
There are other ways to raise rents. Maybe your tenants will agree to $30 more per month if you have a carport built. That's $1080 more net income annually, meaning roughly $13,500 more value added to your property. ($30 x 3 units x 12 months = $1080 divided by a .08 cap rate = $13,500) If you can build that carport for $4,000, that's a good return on investment right? What else do they want?
Higher rent isn't the only way to get more income. Storage sheds can be rented to tenants or you could put in a coin-operated washer and dryer. With a larger income property, you could install pop machines.
Reduce Expenses Of Real Estate Rentals
Could you add insulation to reduce the heating costs? If you're paying $80/month for lawn care, will one of the tenants do it for $40? Could you buy cheaper insurance? Any way you can reduce expenses raises net income (unless it scares away tenants). A new $4,000 furnace that saves $800/year on heating costs means you just turned $4,000 into a $10,000 higher sales price.
This isn't an exact science, and of course appearance and other factors matter. Increasing that net, though, is the surest way to get more for your rental properties. Make the changes at least several months before you try to sell the property (a year before, if possible). Also, learn how do the math - it really does matter with real estate rentals.

About the Author
Steve Gillman has invested in real estate for years. To learn more, go get your real estate investing course free at: http://www.MakeThatOffer.com

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