VALUE-ADD OPPORTUNITIES Over 16 years, I have bought everything from single-family homes worth $50,000 to portfolio projects consisting of multiple apartment complexes totaling over 600 units. Something that remains the same is the importance of finding investment property where “value” can be added. I know the phrase “value-add” is so overused, but it really is the #1 aspect we look for as we acquire new investment property. With regards to adding value, I just interviewed a woman on our podcast, The Real Estate InvestHER Show, who converted an ugly duplex to a 9-bedroom house that she is going to lease out as a luxury short-term rental. Bottom line - there are SO many ways to add value, here are few to think about: 1. Adding bedrooms and/or bathrooms 2. Improving the exterior of the property 3. Adding amenities such as coin-operated laundry facilities 4. Updating kitchens and bathrooms 5. Opening up an apartment to create an open floor plan To add value most effectively, you always want to be asking “What is the highest and best use of this property in this community and in this market? What is in demand in this market?” And then work hard to find the answers to these questions. As a result, you will add value to your investment properties thus adding value to your customers.
OCCUPANCY
When you’re looking for investment properties, the number one thing to look for is occupancy. Your investment properties are a business, and just like any other business, yours will need customers in the form of renters to be successful. Occupancy helps to ensure that customers exist who are truly interested in what you have to offer. For example, in Little Rock, desirability on the part of renters mainly depends on walkability — how easy it is to get around on foot. Little Rock’s Downtown and Soma areas are expanding greatly, and they have fewer vacancies than other areas. These areas boast popular attractions such as restaurants, parks, and grocery stores, all within walking distance. Many potential renters are also pet owners. Allowing pets and having dog parks and pet-friendly restaurants nearby can make your properties much more attractive and keep your occupancy high.
IN LITTLE ROCK, DESIRABILITY ON THE PART OF RENTERS MAINLY DEPENDS ON WALKABILITY.
Cassie Wells KW Commercial Little Rock, AK Connect with Cassie
Elizabeth Faircloth The Real Estate InvestHER® Connect with Elizabeth
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