One of my favorite real estate strategies is forced appreciation. I have previously mentioned how this strategy can increase value by simply improving an area or space. The amazing thing is it works in any market condition. New windows here, a backsplash there, upgraded tile here, it all adds up. But, how do you know what’s worth the splurge? Calculate your return on investment or ROI! Let’s update a
kitchen and install granite counter tops for $1,200 per unit. Now you charge an extra $75 per month in rent or $900 per year. Your ROI would be $900 divided by $1,200 equaling 75% return on investment. Now, you have to decide what your money is worth.
