1) Upgrade Vacant Land



If your investment is vacant land (not improved rental property), there are several things that you can do in an effort to add value. For instance, you might consider getting a temporary use so the land can be utilized maybe as a U-Pick strawberry patch, or an overflow parking lot for a used car dealership. Clean out any junk or debris littered on the land, and try to get the neighbors to clean up their properties, as well. If the lot is barren, consider strategically planting some trees or plants. Finally, see whether the local authorities are willing to rezone the land to a higher and better use.

2) Spit-Polish the Exterior

Curb appeal is the property's calling card. The first impression a prospective buyer gets as he or she drives past or up to your income property can mean the difference between a sale with a profit and no sale at all. Start with the landscaping. Pruning or replacing plants and shrubs around the building is a good way to add very positive results immediately and in the long-term. In fact, landscaping is probably the best element to consider first.

A redesign of the entrance to a property can also impact a property's appearance. As can a new walkway or the installation of a new door (many consider the "front door appearance" one of the very best single expenditures). New door hardware, a new brass mailbox, and a new brass doorknocker around a freshly painted or new door, for instance, can be all it takes to give an overall impression of quality throughout the building and the kind of "remodeling" that can turn a dull, drab property into a fresh vibrant one that seems to beckon new buyers.

How should you handle things that need "fixing"? If you're new to real estate investing, you might shy away from properties that need a lot of repairs unless there's ample capital to handle hidden problems that could surface. Otherwise, here are some tips.

Small items that need to be fixed should be completely repaired with quality material. Leaky plumbing fixtures, broken toilet seats, sticky doors, faulty cabinets that neither open or close correctly, and so on, are all minor things found in most rental properties that can be fixed inexpensively. Just be certain that you do it right and that you use quality materials.

3) Dig for Interior Treasure

If you're looking at an investment property that's priced below market, chances are it's because the previous owner failed to care for it. Turning around a property that hasn't been cared for can take ample cleaning, fixing, and painting, and may take time, but it will be worth it.

Here are some easy things you can do during the inspection process to maybe uncover a few "gems" hidden in the property that might give the interiors a fresh and more expensive look.

Look under the carpet for hardwood floors, tile, or marble. Bringing these back to their natural state can be much easier than replacing the carpet, and certainly can add value. While you're at it, also look for rotten floorboards, termite damage, and worst of all, asbestos. The key is to know what you are dealing with in all eventualities, and if a problem is encountered, you can get an estimate on what it will cost to deal with it, or walk away from the deal by using one of the outs in the purchase contract.

Check under the paint on doorplates, hardware, and railings. Countless brass fixtures and other brass items have been discovered in older properties under blankets of paint that you wouldn't be able to replace today for less than a fortune.

Tap on the doors and walls to see whether they're solid. Solid wood doors in good shape can be restored and add value to a neglected building. Solid-sounding walls might indicate block or heavy plaster, which are more costly building materials than cheap wallboard, and therein capable of adding value to the real estate. Plus, these better-quality features are sure to provide you with good marketing copy later.

4) Exhibit Pride of Ownership

Any owner making an effort to maintain a property in top condition and shape is an owner exhibiting pride of ownership. Thus giving the impression that the property was purchased to be "owned" and not for a fast turnover, and in turn making the most positive statement to tenants and future buyers. Moreover, how a landlord maintains his rental property becomes public knowledge in a short period within small communities, and even in larger cities, eventually becomes known inside real estate circles.

Just be clean and neat. Pride of ownership doesn't have to be lavish or extravagant, nor should it be unless the rents and property location warrants it. The idea is to draw interest in the property and at the same time to eliminate any doubt that things are not well maintained.