professional.
Stay conservative. Beware of pricing your property as if it were a cut-above the rest. For budget purposes, stay on the safe side and aim for a sales price that sits somewhat below the highest-valued income property in the area. The closer you push toward (or above) the top price limit of the area, the more difficulty you will face in trying to get your price—even when your property is expected to show clear superiority over the others.
Estimate Costs
After you’ve set a realistic sales price for the property, develop your cost estimates—what it will cost you to achieve that sales price.
Just bear in mind that investors are only going to pay you for thehttps://shakuryukou.com/
income that the property generates. Cost-plus pricing doesn’t work. Investors aren’t going to care how much money you put into the kitchens or landscaping, they will just be concerned about how much rent the tenants are willing to pay due to those improvements.
Structural issues, of course, are a different matter. The building must have a sound infrastructure such as a roof, electrical, and plumbing. The warning here is simply not to expect an investor to pay you for a superfluous grand over-hauling of the building.
Learning how much you might spend to upgrade the property is a skill that should develop through experience. In the meantime, until you get the hang of it, you can follow these suggestions.
1. Research materials cost. Visit home improvement suppliers, lumberyards, and hardware stores. Talk with knowledgeable store personnel. Learn alternative solutions to various types of common problems and price/quality trade-offs.
2. Educate yourself. Many home improvement centers offer classes and seminars for beginning remodelers, renovators, and rehabbers. Study books and magazines devoted to this subject.
3. Consult property inspectors. Accompany your property inspector as he performs your pre-purchase inspections. Ask for advice about potential costs and remedies.
4. Secure multiple estimates. Contractors and trades-persons typically provide free cost estimates. Discuss with them alternative ways of curing any property deficiency.
5. Talk with property owners. Ask those who have improved their properties to tell you what they know. Learn from their experiences.
