french property options

selling income is not like selling a house. You can paint a house, and a little more, because it looks beautiful. Accommodation is different because it is bought by investors, based on income more than new paint. Income increase and you raise.

Suppose that investors in your area with a capitalization of, 08 In other words, they want a net return (before loan payments and taxes) of 8% on the purchase price. If your three-plex generates $ 12,000 net profit per year, they are worth about $ 150,000 ($ 12,000 divided by .08). Make it generate $ 16.000, and you make it $ 200,000.

Additional income from your property income

Higher rents is the obvious way to increase the income, if you justify this. Find out what similar units are for rental. If you have $ 60 below the current rate, you can rent and do not lose your renters. Raising the rent $ 60 for three apartments means $ 2160 more net income annually. At a ,08-rate cap that you just added $ 27,000 to the value of your property.

Other ways to rents. Your tenant may be up to $ 30 more per month if you have a carport built. That is $ 1080 more net income annually, meaning that about $ 13,500 more added value for your property. ($ 30 x 3 units x 12 months = $ 1080 divided by a ,08-cap rate = $ 13,500) that the build carport for € 4,000, and this is a good return policy? What do they want?

Other ways to get more income. Rent warehouses to tenants or to a coin-operated washer and dryer. If you have a larger income property, you can install pop machines.

Reduce rental charges

Can you insulation to the heating? If you pay $ 80/month for lawn care is one of the tenants may be for $ 40? Is it cheaper insurance? Look for every way you can reduce costs. A new furnace $ 4,000 $ 800/year saving costs for heating means that you have just $ 4,000 into a $ 10,000 sale price higher.

These things are never an exact science, and of course, appearance and other factors matter. The increase in the net, but is the safest way to get more for your property. Only the changes at least several months before you try to sell. Also learn how to again - it really is important.

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