When you are getting into real estate or if you are already investing in real estate you have definitely heard of the term value add. Most people may be wondering what exactly a value add property means. In the most simple terms, as you can get from the name, you are adding value to the property. Value can mean many different things to different people. I will share 4 of the ways we at KB4 Property Group look to add value to our apartments.
First we look to purchase the property under market value- this means we will look at hundreds of deals before we purchase the right one- Instant Value Add
Next we check out what the current owner is charging for rents. If there is a discrepancy between what the owner is charging and what market rents should be, that means we can add some additional value by raising rents.
Next we look for additional space to add rooms or apartments. This is a great way to turn a 2 bedroom apartment into a 3 bedroom apartment or a 6 unit building into an 8 unit building. Although this can be pricey to complete, the value you add to the building will outweigh the costs.
We check to see if there are additional areas of income that are not being utilized that we can capitalize on. A few main ones we look for are pet rent, parking, storage, washer/dryer rental, internet chargeback.
Ready to invest and Get in the Game?
Reach out to Bill or Bob to learn more about becoming an investor with KB4 →
Comments