There are two investment components to the strategy of "buy and hold". One is income derived from the rental of the home. The second is appreciation of the asset. Over the last few years, income was the primary component as appreciation in many markets leveled out. Appreciation is cyclical and local so there is no set assumption as to when that component may create significant value. Your rental asset though is valued on both components. A standard valuation of a rental home is not a comparable sales study typically completed by a REALTOR-unless the buyer will be an owner-occupant.
So, the measurement of the value of your rental home becomes a factor of the successful gross and net income received combined with any increases in your equity. WILMOTH can certainly be a factor in the improvements in your gross and net income. We can also make many suggestions of improvements we have seen made to a property that will help appreciation be maximized.
For more ideas on how to improve the appreciation part of the increased value question, here are a couple of articles we prepared for our owners. Combine some of the strategies you will read in these articles with strong management practices and you will experience property value creation in a positive measure.
WILMOTH Group is headquartered in Indianapolis and Fort Myers, Fla. WILMOTH Group focuses on providing creative local solutions for a variety of residential real estate needs including, properties for sale, property management services in Indianapolis, and short-term management services in Tampa and Fort Myers.
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