The main ways to profit in the real estate industry are to increase cash flow and mortgage pay down. However, there is another option to increase your profit, and it involves these five ways to increase your investment property’s value.
Enhancing your investment property’s value is a goal for many real estate investors and house-flippers. By creating an additional route in your business, you’re able to make a more significant profit that will assist you in your long-term goals.
Improve Curb Appeal
First impressions are critical in almost every business, but in real estate, they’re imperative. When a potential homebuyer arrives at a home, they’re analyzing the property from top to bottom. People want to see themselves coming home to this location every day, but if the outside doesn’t look good, their assumptions about the interior will turn them away from your property.
Increasing your property’s curb appeal is essential and may sway your client to purchase your property over someone else’s.
A great way to improve curb appeal is to increase your landscaping efforts. This may consist of hiring a lawn care service to mow the lawn each week and planting greenery around the home.
If your property has a front porch, make it extra appealing by creating a cozy feel to it. Adding a porch swing, patio furniture, pillows, and a table can instantly make it look more livable.
Add Eco-Friendly Features
As we inch into the future of technology, many people want to live greener lifestyles (without the additional effort). Your investment property becomes more attractive to the right tenants when you install energy-saving appliances and a programmable thermostat.
In addition, eco-friendly home features help the buyer or renter save more money each month on their utilities.
Upgrade and Renovate When Necessary
One of the most proper ways to increase your investment property’s value is to make repairs and upgrade the home as much as you can. Many people are not willing to spend an extra $5,000 on a house with appliances and features that are retired and worthless.
Inspect the home and determine what needs to be upgraded or renovated.
Spend Money Efficiently
Keep in mind that it’s important to know which areas you can spend more on when you’re renovating. Kitchens, bathrooms, laundry rooms, and outdoor spaces are areas that can lead to a higher profit.
Spending your budget on less important places like a bedroom closet may result in lost profit. Be sure to spend more where you’ll earn more. Many hard money lenders in Tulsa can help provide additional funding for your projects to balance your financial assets.
Raise the Rent
Another way to increase your property value is by increasing the rent for your tenants. However, be sure you’re aware of the possible outcomes that accompany rent increases. A tenant may no longer see the value in your property for the amount you plan to charge, and they may leave.
Your investment property is directly linked to how much profit you make at the end of your term. By utilizing these five ways to increase your investment property’s value, you will ensure proper profit margins for your business.