Every real estate portfolio starts with a goal. Your objective could be to make a certain amount of money by a set date. Thus, you'll need a strategy to achieve that goal.
If you want to make money in real estate, you must have a solid understanding of your property value. Next, you have to increase the value of that property to command as much revenue as possible.
Think about how much you can get from one investment property alone. Once you've mastered your first property, move on to the next purchase to start building a profitable portfolio.
Here are a few tips for increasing value.
1. Start With An Appraisal
Never start this process without a property appraisal. You'll learn how much your property is worth currently and its value potential in the future.
Learn about appreciation rates. This rate determines how much your property value will rise over time, but what defines the appreciation?
Look at the property values of the location. If your property is located in an area with growing homeownership rates, your appreciation rate will increase. If the area is a hub for growth, like industry and entertainment, those rates will continue to rise.
Amenities and environment also play a role. For example, San Diego is high in demand for its beaches, great weather, and biotech industry opportunities. Thus, appreciation rates increase in some of the most popular areas.
If you're planning on generating income from the rental model, you can also request a rental analysis from Income Property Advisors Inc. Simply, provide all necessary information from address to square footage to receive a value estimate; this value will help you set an appropriate monthly rent price.
2. How to Choose Upgrades
Look at surrounding properties in your area to determine the best upgrades for your property.
For example, if neighboring houses have pools with decks, take this as a sign to install these features in your own backyard. You may want to invest in fresh backyard landscaping to enable more outdoor entertaining for renters.
If you own a two-bedroom home, you may discover that you can get more value from adding an additional room to create a 3-bedroom house to rent.
Do your research to find a high-quality contractor who can deliver results at a reasonable price. As a real estate investor, you must forge connections with the city's best contractors, HVAC technicians, plumbers, and more home services.
3. Upgrade the Curb Appeal Of Your Investment Property
When you drive by a property, what's the first thing you notice?
You likely notice the front yard landscaping, exterior facade, roofing, driveway, and porch. These structural elements fall under the curb appeal umbrella. They also increase your property value with the right upgrades.
Stellar curb appeal is necessary for eye-popping real estate photos. These photos must look as perfect as possible, reflecting the value and listing price of the home.
Start Increasing Your Property Value
You need a plan of action for increasing property and rental value. Don't forget the above tips as you work with a professional who can help you get the most out of your investment property.
San Diego is an enviable location for any real estate investor. Let Income Property Advisors Inc. manage your San Diego real estate portfolio.
Call us now to get started!
