How can you increase the value of your property? Do you have to wait for prices to go up?
One of the excellent things about real estate as an investment vehicle is that you have more control over the value of the property. Unlike stocks, mutual funds, or REITs, you have the ability to directly influence the value of your properties.
If the market is weak and prices are stagnant, you can enhance the value of your rental by improving the condition, quality of tenants, and raising the rents appropriately over time. As your vacancy rate declines and your cash flow improves, the cap rate will go up and you will be able to command a higher price when you decide to resell the property.
Improving the value of your property will also allow you to take out cash in a refinance to remodel or use to acquire a new rental property, driving continued growth.