Today we are sharing the final piece of our three part blog series on how to get positive cash flow out of your Tampa investment property. In the first part of this series, we talked about operational changes you can make to increase your cash flow. In the second blog, we discussed managing your debt to maximize cash flow and today, we are talking about improvements you can make to your property to see more of a gain in how your property performs.
What you can do really depends on the nature of your property, how it is built and where it is located. When you make improvements to the home, you can often increase the amount of rent you can charge. Many landlords will do kitchen and bath remodels, most notably. You don’t have to do a complete renovation, however. Take a look at your flooring and lay down new carpet or install ceramic tile. Upgrade your appliances or do a complete paint job on the exterior and interior of your house. Improvements such as these will help you charge more rent.
Let’s talk about kitchens and how investment property owners might remodel them. You can spend around $10,000 to remodel a kitchen. That might seem like a rather large expense, and it is. However, think about what that investment can do for your monthly rent potential. If that $10,000 kitchen helps you bring in an extra $200 a month in rent, you’re really going to see your cash flow pick up. It’s probably a project worth doing. Remember that you will not only increase your cash flow right away by increasing the home’s rental value, you’ll also build the equity you have in the property. That updated kitchen will make it more valuable, and you’ll see a payoff when you decide to sell.
We hope this blog series on increasing your cash flow has been helpful. Contact us or give us a call if we can answer any questions at (813) 875-7474.