“Which is More Important?” What do you think? Well, of course my blanket answer is that, it depends, however – I won’t leave you hanging, I will tell you what I mean. The first question you need to ask is which has the most profitable payoff? If I raise my rents on my 100 unit property $25.00 per month that is an extra $2500 per month income OR $30,000 per year. This could have the potential of increasing the property value about $300,000. Just with the $25 increase.
Or, what if your insurance was $33,000 per year. You found a better carrier that can reduce it to $25,000 per year, saving you $7,000. You not only made a nice impact on your cash flow but your property value is now $75,000 more. Now, here is the nice thing. What if you did both of these at the same time? Wow! continue reading…