You’re probably already familiar with the power of commercial real estate. For example, if you’re able to increase rents by $50 and decrease expenses by $50 per unit per month and you have a 24-unit apartment building, you’ve increased the income of the property by $28,800 per year.

Not that much, you say? It doesn’t seem like much. But if you assume that the capitalization rate is 8.5% for buildings like this in this area, then your tiny increase in income increased the value of the property by $338,824.

Sound a little better?

“Yes,” you say, “but how do I create this value?”

Here are 8 ways you can increase the income of your asset and increase the value to maximize your profits with apartment buildings.

Read the entire article on the Bigger Pockets.

 

 

 

The Secret To Raising Money To Buy Your First Apartment Building

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