Forced Appreciation is like a fix and flip on a larger scale!
In this podcast, you will learn the 1st of 5 Ways we make money in multifamily!
- Forced appreciation: Appreciation that you control
- How multifamily is valued
- What is NOI
- 2 ways to increase NOI
- How to add more income through raising rent, laundry, storage and more
- What raising income by $50/month can do for your NOI and property value
- e.g.: $50 X 100 units = $5K/mo X 12 month = 60K
- How to calculate value by dividing $60K by cap rate: e.g.: 60K divided by .05 = 1.2M
- How raising the value can allow you to pull out equity and use for other things
- How forced appreciation is similar to fix and flip
- How cap rate no longer matters with forced appreciation
- How areas with low cap rates make more money by adding value
- The formula for calculating value: NOI/Cap Rate=value
- And so much more!
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