“Future is about creating value. If we have the tools to empower each other, more possibility is reality.” Jessica Jackley

If you are looking to sell or refinance, the rental income of your multi-unit properties is to a large extent, going to determine the value of your property.

ARE YOU LEAVING MONEY ON THE TABLE? Are you raising rents once a year? if raises are allowed by your municipality, you should be. Determine the amount you are able to raise your rents. Do a market analysis of similar properties close to yours and send out the notices if your rents are under market value. With rent control, it is very unlikely that your rents are below market value, so don’t lose income every month.

RECONFIGURATION If you have a vacant unit, can you add another bedroom? Check with your contractor, but you may be able to add or remove a wall , making a one bedroom into a two bedroom or a two into a three bedroom. If you don’t do these modifications while the unit is vacant, it may be years before you get another chance. If your property is not a candidate for reconfiguration, you may be able to add a bedroom or a bath, creating higher rental value.

ADU Is there room to add an ACCESSORY DWELLING UNIT? The requirements are much less stringent than they were a few years ago, but there is no guarantee that the laws will not change. Speak with a few contractors who specialize in ADU’s and get some ideas and some bids. This could ad substantial income to your building, and in most cases, offset the cost of construction leaving you with a monthly profit and a substantial bump to your GROSS SCHEDULED INCOME, creating additional value for your building.

REFINANCE Check the latest rates and it may be time for a refinance. Especially if you have a second trust deed on your building. You may be able to lower your monthly payment, and even borrow additional funds for repairs (like an ADU)

CHECK YOUR VENDORS Are you getting the best rates for monthly services? If you are renting a washer and dryer, would you be better off owning? Do a comparison on your expenses and you may be able to lower expenses, which could improve your NET OPERATING INCOME, thus improving your CAPITALIZATION RATE which should probably increase the value of your building.

“Excellence is the gradual result of always striving to do better.” Pat Riley

What we at PRS PROPERTIES CAN DO. We can give you a good idea of the current value of your building. We can suggest changes you might want to make before sale to give you an idea what type of building you would be able to exchange into. You may decide to stay in the rental business or you may want to move into a more passive real estate investment, such as a triple net or a DSL.. We are always available to chat. We can give you referrals for professionals, such as lenders, contractors, and engineers, so that you can decide who you feel best with. We can supply you with rent and sale comparable in the area of your properties, so that you know what rental values are in your area. It is important that you know the true value of your rental units, so that you can get them rented right away at market value, or at least as much as possible with rent control restrictions. We can look at potential purchases that you may be interested in to make the property more desirable, and maybe look at potential issues that an insurer might require you to repair.

If you should decide to sell your building, we can help you exchange into a larger or smaller properties. We can even help you move into something with less management responsibilities. We can also help with getting the paperwork together for a refinance if that is your desire. We can also recommend experienced licensed contractors who can perform any repairs or installations you may need prior to selling. We can also look at your building for other easy and inexpensive changes that might allow you to get a higher value. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We are currently looking for “as-is” properties and are willing to purchase with low rents, deferred maintenance or even with a problem tenant in place. We can offer a 7 day escrow and all cash at closing. Give us a call. We have also put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are currently in 1031 exchanges and need to identify a replacement property before their 45 day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.