BRRRR Help a new investor needing advice

[Alexandria Harden]

I am a fairly new investor looking to buy my first 8 unit apartment complex. I am buying locally from my real estate agent but the property is already fully rented out. How can I add value while they are in the units as well especially with the weather being as cold (Property is in Central Illinois). Also how do you go about redoing contracts with the ability to raise rents even though they have been in the property for awhile. 

[Jason D.]

@Alexandria Harden the best way to add value would be to lower expenses or raise income (rents). Because an 8 unit is valued by CAP rate and income, increasing your NOI will, by default, raise the property value. You can start to raise rents as leases expire. Theres nothing that you can do about current leases in place, but as they expire, you can renew with your lease, and rental rate.

Are utilities metered separately? Separating utilities are a great way to lower expenses

Is there a laundry facility? Coin laundry is a way to increase income without raising rent

Look over any outside contracts to see if you are overpaying for anything like landscaping and snow removal.

Just a few small examples to raise property values without swinging a hammer.