If you are completing a significant rehab up front then the big value increase would be once the rehab is complete and would diminish... but there are many other variables involved (ex. areas experiencing revitalization, so you rehab and significantly increase rents), etc.

I've gone overboard with trying to provide too much value, and at a point there is a diminishing returns effect.

Just watch as those changes orders pile up or they walk off the job in two weeks because of diminishing returns.

At some point it will sag though, as supply for profitable wholesale deals diminishes and/or return growth becomes marginal.

The yields for buy and hold as well as value-add opportunities are diminishing.

I know federal regulators are trying to diminish the number of banks and thrifts from north of 10,000 to closer to 6,000.Property is newer construction, 6 years old, listed at $1.9mill with a 11.5% CAP rate and a rate increase in a couple years to a 13% or so CAP.

In a few years the value of these items will be heavily diminished for what I could sell them for.This versus buying a house say for 50k that in 3 years could be worth 85k where you have built equity and positive cash flow.

The value dynamic that occurs is called diminishing returns, where the first unit of feature is worth one amount and subsequent units of the same feature are worth less.

Also there is some diminishing returns on some things.

Everything on the first page, and especially the top half, carries more weight - the rest is just application of the law of diminishing returns