When you have a rental property, especially a multifamily rental property with five or more units, the value of the property is actually based on the income that its able to produce. The wonderful thing about investing in rental properties is that you do have some control over this value. See, you are in control of the income and even the expense of the property.
When you first purchase an existing multifamily rental property, you can negotiate better prices for many services. Sometimes, you can install supplementary income generators like coin-laundry or services. You can look at rent and determine of the rent is set at an appropriate amount for the area. If it’s not, a slight increase in rent can result in significant increases in value. Often tenants understand small increases, especially if you keep the rent below average for the area.
In shared dwellings, you can reduce your own expense by installing energy efficient light bulbs and plumbing fixtures. In truth, there are a myriad of ways to cut operating expenses while keeping your tenant happy. If your property is valuable enough, you might even consider a cost segregation study to decrease your tax obligation.
Are You Looking for a Hard Money Loan to Flip a House Or Buy A Rental Property?
Paces Funding is a hard money lender offering hard money loans to purchase and renovate non-owner occupied residential and commercial properties throughout the Atlanta, Nashville, Florida, or the North and South Carolina metropolitan areas. Our application process for hard money loans is easy. Just fill out this very simple online form and you will be contacted shortly. Unlike other lenders, the window between applying and funding is very small. We have funded properties in as a little as one day, but typically funding hard money loans takes about seven to ten days.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.