In this episode of Get Real Wealthy Season 2, Quentin talks about increasing profits on a particular property.
Quentin mentions that these tips are taken from one of his bestselling books, Property Management Toolbox. Quentin says that what we want to do is increase or get a higher net operating income, and therefore increase the value of a property. It depends on the provincial laws, as well as the municipal laws. He adds that if you need to increase the profit on a particular property, and the deal doesn't make sense, inexperienced investors usually sell the property. However, you can renovate the property and then sell the property. Secondly, you can increase the density of the asset. Whenever you evaluate a property, you want to bring it to its highest and best use, such as adding secondary dwelling units. Adding new units is a great way of increasing profits. He says that this depends on the municipality and regulations.
Another option is to use the rent-to-own strategy. Although this is primarily an exit strategy, it's a way for you to collect some money upfront. You get an additional option payment alongside the rent. He adds that sometimes it can turn a negative cashflow property into positive territory. Another option is to do a short-term rental, either within one of the units or within multiple units within a rental property. However, it is time intensive. It's like running an additional business. Lastly, he shares an out-of-the-box strategy. He says that you should look at the neighboring properties and see if you can acquire the neighboring properties and rezone those properties into something different that you can build on.
Quentin adds that in some places, you can take two or three single-family homes, put them together and create an envelope that you can build 20 units on, and then a developer can come in and buy that. You don't even have to do the development part, all you have to do is the land assembly. In conclusion, he adds that sometimes you can take these five strategies and combine some of them to put the property to its best use and maximize profits.
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