Great trick for better cashflow and equity gain

2 August 2021 by Ross Barnett

Great trick for better cashflow and equity gain

Do you want better cashflow?

Lots of property investors want better cashflow.  But then you start suggesting ideas and opportunities, and the response is “no”, “no I can’t do that”, “no my property isn’t suitable” or “maybe later”.

I watched Ilse Wolfe (Opes Partners Property Coach - https://www.opespartners.co.nz/property-coaching/renovations) speak to Waikato Property Investors Association a few weeks ago, and really enjoyed it. 

My key takeaway – Don’t just go with the easy answer and say, “no I can’t do that”. 

One of her favourite concepts was add a room.  I have discussed this before and often suggest the idea of adding a room, but most investors brush it off with a reason why they can’t.

·    Her thoughts were that in a main centre, adding a bedroom added on average an extra $150,000 of equity!  Are you keen on extra equity to help you borrow more in the future?

·    She showed a few cashflow examples, and the extra cashflow was fantastic.  Generally, the dollar spend is quite small, so it is also affordable for most investors

 

Action from here – Rather than saying that “can’t do it”, why not get copies of each floor plan for each of your rentals (or could even be your personal house) and try to work out how you could add another bedroom.  Or you could contact Ilse, and this is one of her favourite things to discuss.
Also consider other ways to increase cashflow

·    Review rent!  Simple and easy, and often can give great extra income!

·    Renovation

·    Convert garage to bedroom with ensuite.

·    Airbnb some of your personal house

·    Flatmates or boarders (see my past blogs about tax implications)

·    Subdivide, or minor dwelling on back


Kind regards

Ross Barnett | Property Accountant

 

Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular person's objectives, financial situation or needs. Any opinions contained in it are held by the author as at the report date and are subject to change without notice.

preview image - Lifetime Book Club: Stillness is the Key by Ryan Holiday

Lifetime Book Club: Stillness is the Key by Ryan Holiday

In a world that rewards speed, noise, and constant movement, this book offers a different perspective. One that suggests clarity, better decisions, and a more meaningful life do not come from doing more. They come from slowing down.

This is not a productivity hack or a call to retreat from real life. It is a thoughtful reminder that stillness is not weakness. It is a strength.

30 January 2026 by Lifetime
preview image - Mastering the New Year: The Psychology, Power, and Precision of Goal Setting

Mastering the New Year: The Psychology, Power, and Precision of Goal Setting

For many, the beginning of a new year signifies a fresh start, a blank canvas upon which we can paint our aspirations and ambitions. Goal setting is not just a yearly ritual; it is a powerful tool that empowers individuals to strive for personal growth, achieve milestones, and lead more fulfilling lives.

29 January 2026 by Lifetime