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