Chapter 19
Ten Ways to Increase a Property’s Value
IN THIS CHAPTER
Increasing cash flow
Encouraging equity buildup
Taking advantage of tax benefits
Appreciating appreciation
As we cover in Chapter 12, you can receive a return on your real estate investments basically in four ways — cash flow, equity buildup from loan paydown, tax benefits, and property appreciation. A great aspect of real estate is that you can buy properties according to your particular financial and personal needs. Different properties are geared more toward achieving one of these types of return than another. For example, an investor with significant earned income may focus on properties with tax benefits and not worry as much about cash flow. Investors nearing retirement prefer properties with cash flow. And all investors who have financed their rental property acquisition benefit from equity buildup while looking forward to appreciation.
Successful real estate investors continually ask themselves, “How can I improve the returns on my real estate investment in each category?” In this chapter, we highlight more ...
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