Get Highest Rents With These 5 Improvements

a lot of people want to know how i afford such a nice lifestyle and i want to tell you right now that all the nice things in life i have came from real estate and for the most part i bought thousands of homes i rent them out and there are five specific improvements secrets that i use to get the highest friends possible and today i'm going to show you what they are one one one shot now i'm turning dreams into reality [Music] listen if you're one of my subscribers you know that i'm not in my studio today i just got back from this crazy hunt in alaska literally dropped this amazing 10-foot monster of a bear hunting provides such amazing leadership opportunities for me but i'll tell you something hunting the way that i do it it's a little bit expensive like six-figure expensive that lifestyle is available because i've been investing in real estate for the last almost 20 years and you know i've got buddies that will flip properties and i find that there's something short-sighted if all you do is flip real estate because yeah you can make some good money on it but it's these short-term gains it's like it's almost like having a job you work your butt off you get a big check and then you live off of it then you got to do it again but when you get in the rental game what ends up happening is with each house you own you pick up a ton of benefits right think about it you're collecting a positive cash flow if you buy it the right way which is why today i'm talking about five different improvements on how you get a higher cash flow out of it but in addition you've got the tax benefits it appreciates it goes up in value all of these things are beautiful but most important is the cash flow because if the cash flow is right every home that you own it's like sending it to work and it's working for you day and night and every month it sends you a check with the excess money that money can be a hundred dollars a month or it can be 500 a month or it can be a thousand dollars a month and part of that comes down to whether or not you're doing these five secrets i'm talking about today wait a second chris you're telling me that there are things that you can do to increase rents i heard that's not really possible like doesn't that just come down to what the rents are like in the area where you bought the house check this out your property's value it's not entirely fixed when investing in a property most people will tell you that the three most important things are location location and location there's a lot of truth to that the rental market is largely based on the local going rates of those rents but there are several things that you can actually do to boost the appeal and increase your return on investment basically do these five things and you can increase that cash flow number one let's talk about flooring like i've got carpet right here we've got really nice hardwood right here does the flooring in my rental make a difference on how much money i actually collect in gross rent could that actually increase the cash flow on my property well let's actually take a look at some studies and what they'll tell you 54 of home buyers are willing to pay more for hardwood floors when buying a house about two thousand eighty dollars extra according to data from the national association of realtors while this may not seem like much by replacing your carpet with a trend your hardwood you make the property easier to maintain and you can boost your rental by fifty to a hundred dollars a month i want you to think about that for just a second 50 to 100 is that even a lot is that even worth it well first of all you've got to learn to think as an investor in terms of roi return on investment so if i pay an extra 2 000 for example for flooring but i get an extra 100 a month well that's basically a thousand dollars a year 1200 a year in two years i've made my money back that's a 50 roi is a 50 roi good the answer is yes it's actually fantastic um you're gonna find with all five of these tips today that wait a second fifty dollars here hundred dollars here twenty dollars here hundred dollars there makes the difference between a mediocre cash flow and what we call in real estate a cash cow as in like maybe instead of just eight udders maybe it's got like 30. number two let's talk about kitchens by the way my kitchen is totally filthy right now but this right here there's a hundred thousand dollar kitchen and if we were talking about selling a house not running a house you might ask yourself okay chris wait are you telling me there's a correlation between putting in a nicer kitchen and obviously that would sell your house for more but are you saying that that actually makes a difference on how much you can rent a property for so let's talk about kitchens then turns out that when selling a home minor to moderate kitchen remodels of 20 000 to 25 000 that offers some of the highest roi that you can actually get in the game of real estate it gives you a 90 to 100 roi that means if i were trying to sell a home and update the kitchen and drop 25 grand in i might increase the value by 100 that means i put 25 in what is 100 on 25 it's another 25 so now the property goes up 50 000 and i know we're talking about renting a house but think about this would you drop 25 000 if it meant 60 days later or three months later you could sell the house for fifty thousand dollars more many people would say that's a great roi most of us are living in a 401k ira world where we're used to getting five six percent a year on the 30-year average so all of a sudden i can do a kitchen remodel and sell a house and make a hundred percent on my money over a 90 day period of time this is really this is big time this can include by the way upgrading counter tops cabinets ceiling fixtures these added perks then what do they do they attract better renters they boost your overall monthly rental income you put in a really nice kitchen could you actually demand an extra one or two hundred dollars a month if the kitchen was spectacular 100 let's talk about lighting check out some of the cool lights in this room i built this for my wife um it's got really cool under lighting strips it's got overall lighting we got a cool chandelier in here and this is a salt room right like this is made from himalayan sea salt this is my wife's crystal collection she absolutely loves collecting crystals this is a place where she stores some of them and the lighting really makes this place pop turns out in the game of real estate lighting is really important when i bought my very first rentals like this was kind of back in the day before you had led options or or different type of textures or options of lighting it was just a bulb and it burned white or it burned yellow and you could literally walk into a room and it could feel totally dingy based on the light the lighting that was set up for it so could lighting actually affect the rental rate let's find out let's talk lighting but first this is my brand new baby main this guy is going to literally probably get four feet across just a kitten gonna be huge so that was random led bulbs make spaces more flattering because they emit a softer light than traditional bulbs according to a study by vaughn led uses 80 less electricity than traditional bulbs so if your tenants pay a flat utility bill then you increase your cash flow by replacing bulbs around the house let's just say that you're spending 80 a month on electricity and if you were to switch to led it would drop it to 16 a month and yet your tenants are just paying an extra 100 a month for the lighting bill well all of a sudden you're taking your cost from 80 to 16. you get to keep that difference that's increased cash flow just because you invested into some cheap light bulbs actually led bulbs are actually a little bit expensive but the roi is going to be there trust me so at the risk of sounding a little bit like a brat when i bought this beautiful mountain house it basically came with a garage that could hold four cars and um right now i'm getting ready next month to break ground on an addition and we're adding like another 10 cars worth of garage space and that's because i have more toys than i have garage room and that kind of brings up point number four which is wait a second garage a place to house a car does that actually really affect the rental rates well turns out it does in a really huge way so let's talk about garages and carports if the property does not already have a garage or car port carports only cost about a thousand dollars to build and tenants will pay an extra hundred dollars a month to have a roof to protect their car from the elements now i want you to think about that by now you're probably getting the picture okay chris you're not just making decisions based on hopeful money we're talking roi i spend a thousand dollars i build a carport and i charge an extra hundred dollars well guess what that extra hundred dollars is twelve hundred dollars a year right a hundred dollars a month times twelve that's twelve hundred dollars but i only invested a thousand dollars that's a hundred and twenty percent return just in the first year alone and i'm telling if you can take a cash flow from 250 to 350 would i invest a thousand dollars to be able to do that heck yeah 100 i would so number five let's actually talk about rooms as in bedrooms would more bedrooms equate to more rent this is uh this is my daughter's bedroom she designed it it's pretty cool for her i think she really likes her space here and i want to tell you something about bedrooms when i got started in the game of real estate i realized that if you had a two-bedroom home and you moved simply to a three-bedroom home that could massively boost the price of a home it could go for tens of thousands of dollars more if you had a three bedroom home and added a fourth bedroom you could tack on more money but if you went from like six bedrooms to seven bedrooms it doesn't really make a difference so if you have a relatively small rental there might be an area in the house even a part of the garage or an unfinished basement where you could add a bedroom let's talk about what that can do to rents this comes from opendoor it says an additional room can add 20 000 to 50 000 to the average purchase price of a home notice that i keep citing data talking about the value of a home well it turns out there's a correlation between things that increase the value of a home and the things that also increase the rent of a home it basically says you can then add potentially several hundred dollars in rental income each month considering that the space already exists putting up drywall or converting a garage into an extra bedroom offers the best roi on a home i remember when i got in on one of my first rental properties it was this small two-bedroom home i added a third bedroom right there in the garage and um the neighborhood you know there weren't a lot of garages in it garages weren't important really in that part of town but that extra bedroom got me an extra 300 a month so when you own real estate or when you're buying real estate you might be thinking man if i could add a carport if i could add an extra room if i could make the kitchen a little bit nicer and get collectively two or three hundred dollars a month more make sure you calculate the roi because the cost of putting up a wall to put in a bedroom may not cost a lot of money it might be the lower of the rois that we've talked about today but don't be a brat like i can certainly be i'm telling you that a 20 roi a 50 roi or 100 roi on any of these decisions far outweighs the average gains in the stock market 401ks iras now you're financially in charge of your destiny by owning real estate that's a smart move listen the information in today's video absolutely vital to increasing the cash flow on a rental property and now you start thinking like i did once upon a time man if i own enough rental properties i can have this pay for my life i remember i got 25 properties they were pulling in a six-figure annual residual um income for me and that basically gave me the power to quit my job real estate has the power done correctly to free your life now if any of the information i've shared today is like wow true but overwhelming like oh i don't know if i'm going to implement it i don't want to know i don't want to become a carpenter or a contractor i don't want to line these people up i don't know if i'm really up for it but i want to get the wins of the game of real estate then you should check out a link below i've provided a link for how you can actually partner with me because i've bought over 6 000 single family homes and i buy them almost every single day and i partner with people all over the world they watch my videos and they basically decide to become partners of mine and then guess what we go out there and we buy real estate together so if you're thinking wow maybe i've got money sitting in a 401k ira equity in a home money somewhere that i could put better to use by investing in real estate but let chris and his team do all the heavy lifting and get it to hit a maximum roi that's what you're gonna find if you click the link below fill out the information my team will reach out to you and basically enlighten you on what that is i'm not gonna lie there's a lot of people that do that with me that want to do that with me so we are really selective and i want to work with people that'll make the best partners people that say hey i want a more secure financial future but chris i also have dreams that i want to breathe life back into i want a better life i want a life like you have bro and if you are up for revitalizing your personal american dream and taking life to another level no matter where you live in the world click that link and i'll look forward to being in touch with you because if we come partners we're going to be connecting chris increasing my rents is one thing on my rental properties but what are the other mistakes that landlords make if you're nervous about how landlords screw it up all the time check this video and i'll share the top five hacks of what they are and how you don't make those mistakes [Music]

Channel: Kris Krohn

Views: 27,124

Keywords: Kris Krohn, Limitless TV, Real Estate

Id: v3NzOH70xak

Length: 13min 35sec (815 seconds)

Published: Fri Jun 03 2022