Ways to Enhance Equity
While perhaps you cannot create something out of nothing, there are many strategies to create something better out of very little. For the creative investor, there are myriad opportunities to improve the value of your investment. Think out of the box in converting usable buildings to livable space. Could a horse stable become a funky college boarding house? Can a mobile home park or parking lot be converted to apartments? Sometimes something as simple as restructuring a floor plan slightly or adding a small room to increase living area can add value. Finishing basements or attics might be just the perfect bonus room a renter or buyer is seeking. Perhaps subdividing a large property, or adding eye catching landscaping can be the extra oomph a potential money maker needs. Enclosures like porches or carports or decks can be added, or sometimes just spruced up with decorative railing or screening.
Bedroom or bathroom additions can be pricey, but perhaps there are less expensive alternatives, such as converting an office to a bedroom or extra mud/laundry area to a small half bath. Adding a separate entrance to a bedroom may make a potential rental situation more appealing. Of course, don’t ignore the obvious income generators- increase rents when applicable, or decrease expenses when possible.
Investing can be enormously creative, and the more you think in novel ways, the more you will be able to find remarkable deals wherever you look. Approach every property with the intention to find the potential, and you may find a hidden treasure.