Enhance Your Investment For Sale (2)

Smaller Expenses
In situations where it may not be feasible to raise rents either
because the market won't allow it or renovations are not possible,
reducing expenses is the best way to increase the profitability of a
property. Remember, an investment property's sale price relates
directly to profitability.

Many times, these types of steps take planning and time to recover
expense. Adding better insulation to a property can save on energy
bills and over time, it is possible the improvement will pay for
itself. At the same time, you can charge more for your investment
property because a reduction in energy expenses adds to profitability.

These types of moves are unique to each property and achieving lower
costs on things like lawn care or snow removal may be more readily
available in some areas than others. Do what you can within your
limitations to reduce cost in anticipation of selling so that when the
time finally comes, you can point to low expenses and high rent income
as proof that you deserve a higher selling price point.

Of course, in a perfect world you would be able to increase income and
reduce expenses at the same time, giving you a much more attractive
real estate investment that will command a better selling price on the
open market.

More realistically, there are at least a few small steps you can take
to enhance your investment property in anticipation of placing it on
the market. Don't let your real estate investment go out with a
whimper. Work to get all that you can out of it to ensure a great
return on what is often times a labor of love.