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.