Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 2 years ago on . Most recent reply

User Stats

50
Posts
30
Votes
Landon Fillmore
  • Rental Property Investor
  • Anchorage, AK and Utah
30
Votes |
50
Posts

Does increasing the NOI on my small-multifamily increase value?

Landon Fillmore
  • Rental Property Investor
  • Anchorage, AK and Utah
Posted

I understand that a huge advantage of multifamily properties (meaning 5-unit and up, commercial apartments, etc.) is that as you increase the revenue and net operating income, you subsequently increase the property’s value.

BUT, my question is about 4-unit properties and below. I own a 4-plex that I bought in September of 2021. Each 3 bedroom unit was rented for roughly $1500 each (so about $6000 gross rental income/month)… I knew this was under market rates for my area, and over the next year or so and with a few tenant turn overs, I now have a gross monthly rental income of $7200. I can increase that to $7500 soon after one more unit is brought up to market.

So, my question is, have I actually increased the value? Will I be able to potentially sell it for more, simply because I’ve made it more profitable? Or is small multi family strictly based on comps during the appraisal process, and other local market variables?

Most Popular Reply

User Stats

6,603
Posts
6,949
Votes
Bjorn Ahlblad
  • Investor
  • Shelton, WA
6,949
Votes |
6,603
Posts
Bjorn Ahlblad
  • Investor
  • Shelton, WA
Replied

Yes you have. When I buy a rental property My interest is what is the rent it is producing today, and how much more rent will it produce when I have worked my magic on the property.

Loading replies...