Posted over 2 years ago

How to get 50% Returns!

Sometimes buying another property isn't the best way to get amazing returns! I was lamenting about bills on a property I owned recently and went to get some quotes to split utilities. $2000 for another electric meter, which has been a pain to get the electric company to sign off on but I'll take it for a $100-150 savings. This is being done on a property that I currently have at market rent in the area so I can't raise rents too much, but I can push the electric off on them. Typically the properties I buy have this split already but this being a SFH with an ADU it wasn't yet. Even if I only save $100 a month on this property that's still a 60% return on the $2000 it cost me to split the electric.

Another thing I'm going to be piloting is sub metering the water. Now I haven't done this on a property yet and don't know how it's going to go but the meters to do it were around $300, I'll need a $500 water heater + installation and paying a plumber to put meters on. If I can successfully pull this off I'll save between $90-120 a month so let's just put the total cost at $1200 to be conservative and because plumbers are pricey. If this works out it will be close to a 100% return on money invested! 

My point is that there are many other ways to make a return on investment besides buying another property. Beyond that you may be able to make or keep a lot more on your current investments!