One of the best keys to real estate investing is the ability to force appreciation. Distressed real estate offers endless options for improvements. Properties in need of upgrades have unlimited opportunities. One property I owned Needed considerable capital improvements. I planned to implement $997,000 in physical improvements. Successful I completed these repairs which realized approximately $6.0 million dollar gain in property value at the end of year five. Yielding this return was a direct result of proper exit planning and execution.
Nominal rent increases have a huge impact on property values. When building a real estate portfolio look for distressed properties with vacant, outdated, and unrentable units including poor management. These qualities offer endless opportunities. Turnarounds improve cash flow and increase value.
Always uncover the smallest items these sometimes will yield you large returns. Be an out-of-the-box thinker and tap your creativity in the process.