How Multifamily Properties are Valued

Debunking Multifamily Investing Myths

DMI BLOG: : How Multifamily properties are valued - Debunking multifamily investing myths

There are many ways you can improve the value of an apartment complex, but what matters is how your investment is protected and grown. That’s where we come in.

There are a lot of misconceptions about how multifamily properties are valued.

In short, they are valued by a multiple of their net operating income (or profitability). The key is to increase revenues and decrease expenses so you can grow your equity in the property.

What does this mean for you as an investor?

Well, if you can increase your property’s income through better management or updating the property, then it will produce higher distributable cash flow and be worth more when it comes time to sell or refinance!

Or, similar to increasing income, if you can lower your expenses by making small changes like upgrading appliances or lowering utility bills with strategies like water & electricity conservation, then your property will also be worth more when it comes time to sell in addition to improving cash flow!

There are many ways you can improve the value of an apartment complex, but what matters is how your investment is protected and grown. That’s where we come in.

DMI Holdings is here to help you make sense of it all. We offer educational resources and tools to help you get started, and we will always be there to answer any questions you might have along the way.

 

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