Rental Property Appreciation



Whenever an investor brings money into Utah, they look for multifamily properties for sale. Utah has some of the best real estate laws in the country and values are booming as a result.

Is your investment property keeping pace? Do you know the value of each dollar your rental earns? How about your cash flow?

Every $1 your property earns, you create $16-$18 in unrealized gains. This comes from the roughly 6%-7% cap rate commonly found around Utah.

Some quick math shows how we come to that figure. Anytime an investor is interested in an asset, they will look at their return on investment. If the goal is an annual 10% return on investment, investors are willing to spend $100,000 to earn that $10,000/10%. The selling party is collecting 10x their annual revenue, effectively making every $1 worth $10 in unrealized gains.

We apply this same principle toward the going rate for a Utah multi-family investment.

These cap rates determine the price in which your property is likely to sell. To secure maximum appreciation, rents must constantly grow. We have systems in place that ensure no penny is lost as we climb the appreciation ladder.



Rental climates are competitive, so how do you show more income? Rental dollars coming in should not be paying out toward common maintenance fees associated with you property. Do you average water over your units? Do you pay for landscaping? Do you provide internet services? Trash? Sewer?

You should never be coming out of pocket for these expenses. They must be assessed to each tenant in addition to the rent amount. This ensures the greatest appreciation possible.

Remember, every extra dollar brought in provides up to $18 in unrealized gains.

You need someone that has your back so you can reach your assets reach their greatest potential.

Ashbrook works to ensure no stone goes unturned while your properties are under our stewardship.

It’s easy to get started—you’ll be stress-free in no time.