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Updated about 7 years ago on . Most recent reply
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How can I raise my property value?
I recently purchased a business and the building. From the cashflow of the business (one entity) I pay rent to my other entity that holds the property. The property was appraised for 350k and was bought for 300K. I like to increase the value of it and refinance it. If I do a 10 years lease to the business entity with about $6,000/month in rent ($4,000/month NOI), will this increase the value of the property? Will the appraisal take into consideration of the 10 lease that is leased to myself? The Cap rate around the me is about 7-7.5%.
Thank you.
Most Popular Reply
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@Sohrab Ansari, For a lender, I can see how having a long term lease can be both positive and negative. But I believe this is a question for @Joel Owens.