Every real estate investor wants better cash flow. But very few are willing to do the small, unsexy things that actually improve it.
And that’s what separates decent investors from great ones.
It’s not always about buying the right property or negotiating the best price. Often, the biggest wins come from doing the work most people skip.
One of the clearest examples of this? Appealing your property taxes.
The Text That Says It All
A few weeks ago, I got a text from a client. He had followed my advice and appealed his property taxes in Michigan.
Let’s put that in real terms:
• Original property tax bill: $3,218/year
• New property tax bill: $2,454/year
• Savings: $764 in Year 1
• That’s an extra $64/month in net cash flow—instantly.
Most investors would be thrilled to find a deal that cash flows $64/month better than the comps.
But here’s the thing: this didn’t come from a better deal. It came from doing a little extra work after the purchase.
The Power of Compound Savings
I wanted to visualize the impact this one decision could have over time.
Assuming a 3% increase in taxes annually (a reasonable long-term average in Michigan under Proposal A), here’s how the savings stack up:
And here’s what the cumulative savings looks like over time.
Let that sink in. Over $40,000 in lifetime savings… from one appeal.
Most People Won’t Do It
I’ve had over a dozen clients ask me to help them strategize their tax appeals this year. Only one actually followed through.
Why?
• It’s intimidating
• It requires paperwork
• You likely have to show up to a hearing
But the return on that effort is massive.
In Michigan specifically, we’re operating under Proposal A, which caps taxable value increases at the rate of inflation (or 5%, whichever is lower).
That makes appealing your taxes one of the most impactful things you can do in this state as an investor.
I wrote a full post breaking this down if you want to dive deeper:
👉 Michigan Property Tax Increase Limit Is Good For Investors
Need Help Appealing Your Taxes?
I also wrote a practical, step-by-step post on exactly how to do it.
Whether you’re in Detroit or another Michigan city, it walks you through the full process:
👉 How To Lower Property Taxes In 3 Steps
You don’t need to hire an attorney. You don’t need a mountain of data.
You just need a strategy, some patience, and a little humility. (Seriously, being nice goes a long way with the appeal board.)
Other Small Wins That Stack
Appealing taxes isn’t the only “small” thing that adds up big. Here are a couple others that I’ve seen separate great operators from everyone else:
1. Raising Rents Each Year
No one likes delivering rent increases. But if you skip this, your cash flow falls behind.
A modest 3–5% bump each year keeps your income in line with inflation—and prevents massive jumps that tenants can’t absorb later.
Even a $50/month increase per unit adds up to $600/year.
Multiply that across 10 units and you’re looking at $6,000 in added income—every single year.
2. Refinancing Opportunistically
When rates drop or you’ve added value through renovations, refinancing can dramatically improve cash flow.
But most people either:
a) don’t run the numbers regularly, or
b) wait too long.
Stay proactive. Track rates. Understand your equity. R
un quick scenarios once or twice a year. One well-timed refinance can shave hundreds off your monthly payment.
The Difference Between Good and Great
In my experience, good investors buy decent deals and leave them alone. Great investors optimize. They squeeze more out of every property by:
• Challenging tax assessments
• Increasing rents in a disciplined way
• Lowering expenses through strategy and systems
• Refinancing when the time is right
They stack small wins, and those wins compound over time into something massive.
Final Thoughts
You don’t need to be a real estate genius to succeed. But you do need to be engaged.
It’s not glamorous to show up at a tax board meeting. It’s not fun to track down comps and fill out a form.
But if you’re willing to do those things—if you’re willing to do what others won’t—real estate will reward you.
Big time.