One unconventional yet highly effective method we've employed in assessing the potential of properties is through the analysis of local social and cultural trends. Beyond the traditional financial and market analysis, we delve deep into the fabric of the communities where the properties are located. For example, in a vibrant urban neighborhood, we take into account the rise of local art galleries and innovative startups. By understanding these trends and their impact on the local economy, we can identify areas poised for growth and investment. Additionally, we've integrated sustainability and environmental factors into our property assessments. We explore the potential for eco-friendly upgrades. By considering the long-term benefits of these green initiatives, we reduce operational costs and attract environmentally-conscious tenants and investors. This approach aligns with our commitment to responsible real estate investments while creating value for our clients and the environment.
As a real estate investor with a 7-figure portfolio, one unconventional method I use to assess a property's potential is looking at how easy it would be to convert extra rooms into bedrooms. The reason? I use the rent-by-the-room model, so maximizing the number of bedrooms I have in my rental properties significantly increases my income.
One of the most underutilized assets of investment properties today is the property's rooftop surface. One of the investment groups I work with is AKA Partners, which incorporates solar collection built into their self-storage and multifamily properties. The solar equipment is placed on covered parking, serving the dual purpose of rentable shade ports and support structures for the solar panels. The power generated offsets operating costs, improving net operating income and the rental income from the shade ports increases gross operating income. The additional benefit to investors is the solar tax credits and accelerated depreciation on the shade ports, increasing post-tax yield. The combined components provide the best return on investment when compared to other improvements.