How Income Producing Real Estate Works

Why do I think that the house I bought in Sept of 2009 is worth more now? Because I know real estate. Multi-family real estate is different than owner-occupied real estate. Here is how - I can force my property to appreciate. I bought Durham road for $282,000. The appraiser assumed I could rent out apartment A for 750, Apartment B for 900 and the cottage for 800. This equals $2,450/month or $29,400/year. The appraiser used a 10% rent ratio which when dividing the yearly income by 10% gives you a value of $294,000. Now I did some work and have about $300,000 in the property. I rent out apartment B for $1,150, Apt. A $875 and I am guessing the cottage, where I live would go for at least $1,150. This equals $2,135/month or $38,100/year. Using the appraisers 10% rent ratio and my property is magically worth $381,000. Now whether this would pan out or not is a different story but if you have a little bit of knowledge you can achieve extraordinary things.