Purchasing a positive cash flow property and having the market drive equity prices higher is the most common method real estate investors use to increase their net worth. It is important to note that this is not the only method of doing so.

One approach is to renovate an existing property and have it appraised after the work has been accomplished. There are many types of renovations one can follow through on but they do create equal return on investment dollars so it is necessary to be choosy as to what one undertakes.

A simple approach to this is to do some painting on the inside and/or outside. The time and cost required to do this is minimal compared to say putting in a new kitchen although both go a long way to improving the value of one’s property.

Some common renovations which are not recommended are to furnish the basement in a home or install a swimming pool. These generally require a large capital investment and do not produce a large return.

If the newest trends in home improvements motivates you to renovate, then go and visit the showhomes in your area. This is a simple but very effective way to discover what the developers in your area are doing to attract buyers and may give you a few ideas as to what is trending in the marketplace.

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