Good way to increase ARV in Miami

[Emily C.]

Hi everyone!

I am new to the real estate investing world and have been listening to the Bigger Podcasts for years. We will finally be able to buy and househack a multifamily property in the next few months. Do any of you experienced in this market have any suggestions on how to help increase ARV?

All advice would be helpful as I'm a newbie! Thanks!

Emily

[Andy Eakes]

@Emily C. Congrats on the new place and path in life! I hope you are super excited for the future. As far as increasing ARV goes, in most, maybe even any market bathroom and kitchen remodels seems to increase value tremendously. Also, if you can add any bathrooms or bedrooms to the property, you'll increase ARV and monthly cash flow because you'll get more rent.

Another thing I will mention is that if ARV is what you are after, focus your rehab on creating popular styles that a lot of people will love. This may unfortunately go against what you think looks good. Hopefully not, but a lot of people miss out on increased cash flow and a higher ARV because they made it perfect to the style they love, but other people do not. 

And finally things like upgrading the windows, doing very detailed decoration work, having a very lush, high-maintenance yard, etc., is not only going to most likely do nothing for your value overall, it's going to use up a lot of money in your budget unnecessarily. Focus on the things that will add the most value first, and then if there is room left in the budget, and the decisions are smart ones, you can spend on the more fun and frivolous stuff.

Good luck!