Over the years, I've used almost every real estate investing strategy, and if you watched my latest video, I talked about them, from starting with fix and flips, to then doing buy, renovate, rent and refinances (BRRR), to just straight buy and holds, to then falling into doing a hybrid strategy of all 3, which I called the Buy, Hold, Increase Rents (BHIR) Strategy.
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I talk in depth about this strategy in my video, 'How to Build Wealth in Real Estate FAST', but in summary, it involves buying small to large multi-unit properties, and even commercial properties, at below market value.
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Why are the properties below market value?
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Because income properties are valued based on the return the property generates.
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If the properties income is low due to low rents; below market value rents, then the property will be valued based on the return the property generates.
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Here's an example of what I'm talking about, using cap rates, (I explain more about cap rates in this video), which investors use to quickly determine a properties value.
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A property generates rental income of $1,000 per month and has expenses of $800 per month, which means it generates a net income $200 per month; $2,400 per year.
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By using the capitalization rate formula, which is:
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Net Income / Market Cap Rate = Property Value
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And we are to assume the market cap rate for this property is 6%...
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The property would be valued at approx $159,000
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However, if you were to increase the rents by $200 per month, the property would increase in value to approx. $199,000.

As you can see, this strategy can increase your wealth fast, and all you need to do is increase the income the property generates.
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To help you analyze potential income properties using this strategy, I've created a spreadsheet that will analyze a properties income, and future income, so that you can see the potential profit a property will have.
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It allows you to look at different scenarios of rents that when increased, change the value of the property, based on the cap rate, which you can also change.
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As well, the spreadsheet also allows you too look at the properties Cash on Cash Return, which any smart investor is also going to look at.
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This spreadsheet can be very helpful for when you are looking to purchase your next investment property.
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Because it can instantly forecast the wealth you can build, if you buy the right property, that is, you buy a property that is below market value, due to the fact the property is generating below market rents.
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