Mar 19

Mar 19 7 Ways to Boost Your Rental Property Income

Key Takeaways

1031 Exchanges. Use 1031 accommodator. IRS to give you an 0% interest loan and potentially keep it forever. If you keep doing it over and over again. You can pass those gains to your errs and never pay those taxes when you pass away.
Cost Segregation - Break down different assets in your real estate investment. If you break down the assets into different depreciation period, you can potentially diverse the depreciation into 20 years. Cost segregation for portfolio can potentially make your real estate investment tax free. There is cost associated with it but if you check the ROI, it could be beneficial.
Sec. 199A/Qualified Business Income - deduct 20% of your rental income.
Opportunity Zones - Investment in property or companies in opportunity zone. You can roll all your capital gain in an real estate investment, defer it to 2026, you can potentially enjoy very low tax [requirement: buying price-land price= building price, then your renovation price/value add should be the same as the building price]

Rent-ready Unit (Really make sure it is rent ready)
Multi-Site Marketing Platform (Rentlytics allows you to upload your photos once and it casts the photos to all the other websites)
Self-Showings & Smart Locks (Don’t lose opportunity and go through all the troubles of scheduling, more eyeballs you get on your units, the faster it get leased; Rently and Codebox)
Identify High-Quality Residents with Tech
Guarantee Market-Rate Rents

Use Data & Predictive Analytics (Know what drive demands and rent prices is really important. RentDNA, RentCafe, Zillow could give you a good overview about the short-term and long-term rent trends, Understand local and regional policies such as rent control)
Compare Performance to Rentals (Revenue Cycle Management - expiration management, know when your lease is due and how can you prepare for it)

Figure out what you are good at (e.g. Find the right deal and what is the right strategy for it)
Align that skill with your passion
Build a team of pros to help you do what you can’t

Understand whether you are in the harvest model or growth mode; harvest mode is more about the cashflows today; Growth mode is more about the future

Easy, Inexpensive Renovations (e.g. Paint, hardwood floor lookalike, low maintenance landscape)
Major Capital Improvements (e.g. estimate the costs $25k-30k improvement and get 6k more per year, fix-uppers are better focus on kitchen, bathroom, appliance, lighting; do researches in the market, what type of renovation in this area can get more rents, copy that)