When to Do Upgrades with a Value-Add Rental Property

New Class

Just got back from a long, relaxing, tropical vacation and ready to help more real estate investors massively improve their cash flow/now when buying rental properties when prices are high, interest rates are high and rents are lagging.

When I got back, I had a voicemail message from a real estate investor that just bought a multi-family property.

They wanted to hire me to consult with them as to how to improve their value-add rental property.

In the voicemail message, they specifically asked about when to do the upgrades/improvements on the property… which they described as rough.

I’m pretty sure… over the years… I’ve answered that question off the cuff, but I don’t think I’ve ever taken the time to really lay out how I think about it.

And, so I put together a… relatively short PowerPoint presentation called, “When to Do Upgrades with a Value-Add Rental Property” for the new coaching program I am putting together.

After I write this, I will teach the class and post the recording both below (for paying subscribers to the substack) and inside the coaching program for coaching clients.

The way I’m thinking about this… this is really about the “Upgrade Property” strategy of improving cash flow/now (highlighted above).

So, here’s what I will cover in this class:

• Where are we as we improve rental property cash flow/now?

• Distinctions between BRRR/R and taking advantage of forced appreciation for a quick sale and keeping a rental for long-term wealth building and cash flow/now.

• How Return Quadrants™ are impacted by upgrades.

• A look at Return in Dollars Quadrants™.

• A look at Return on Investment Quadrants™.

• A look at Return on Equity Quadrants™.

• How to determine if you should do the upgrades/improvements or not... will it improve returns (with a math example)

• Will doing the upgrade/improvement make your return better or worse? A quick, math-based, decision-making thought process.

• The simple math discussion

• The more complicated math discussion including how to do it using Internal Rate of Return (IRR)

Class has been taught and posted below for paying subscribers and posted in the coaching program for coaching clients.

Plus, I’ve added the new spreadsheet for doing the calculations.