Boost Your Net Worth: My $100K Multifamily Strategy

By Benjamin Ficker

Benjamin Ficker is a Multifamily Investment Broker with KW Commercial. With a two-decade career, he delivers unparalleled value and personalized service to clients, earning trust as a reliable advisor. His broad spectrum of experience has led to success for hundreds of his clients.

Last Saturday, one lucky person won $1.765 billion in the Powerball jackpot, which translates to over $700 million after taxes. While the allure of such windfalls is undeniable, what if there was a way to significantly boost your net worth without relying on luck? As a multifamily broker with KW Commercial, I’ve developed a strategy that can add $100,000 to your net worth within a year.

If you’re a multifamily property owner, you might be sitting on untapped potential. Many property owners have rents well below market levels, leaving room for significant income growth. In Oregon, for example, there are rent increase caps, but depending on your property’s specifics, you can raise rents year after year.

My approach is straightforward: raise rents by $100 per unit while ensuring that tenants still see the value in their rental. For an eight-unit property, this translates to an additional $1,200 in gross income per unit, totaling $9,600 in added gross income annually. With conservative operating expenses of $40 per unit, you’d have a net operating income (NOI) increase of $60 per unit, or $5,760 in total NOI growth across all eight units.

Assuming a conservative cap rate of 6%, this NOI growth translates to $96,000 in added property value. For larger properties, the potential increases exponentially. For instance, a 20-unit property could see a value increase of $240,000.

I emphasize the long-term wealth-building potential of this strategy. If you own an eight-unit property with rents significantly below market rates, you could potentially add over $381,000 in value over three years. This strategy not only enhances your monthly cash flow but also positions your property favorably for future sale, especially in a rising interest rate environment.

If you suspect you’re leaving money on the table with your multifamily property, now is the time to act. Consider your long-term goals and potential gains. By strategically raising rents and maximizing property value, you can unlock hidden wealth in your real estate portfolio. Reach out to me to explore your property’s full potential and ensure you’re not missing out on valuable opportunities. Your financial future could be brighter than you think.