All Forum Posts by: Matthew Wright

@Charles Carillo Thank you very much, exactly what I was looking for

I understand increasing income and lowering expenses makes an apartment building worth more, but what is the exact metric for value to rent increase. 

For example I've heard in the past, some people say "$50 rent increases per unit per month, on 8 units increases the property value by X amount, just simply by rent increase" (cant remember formula). 

I've got a property UC that is significantly below market rents, by around $200 per unit, so I'm really curious what kind of value add scenario I'm looking at.

@Kenneth Reimer very helpful thanks!

@Matthew Baltzell Thanks for the link, that was a helpful breakdown of cost segregation. I appreciate it.

@Matthew Baltzell Thanks for the link, that was a helpful breakdown of cost segregation. I appreciate it.

@Scott Mac Good point, that was my initial thought, at very least it would support pride of ownership.

@Bjorn Ahlblad Thanks for the feedback, that is a solid point

I understand that value is driven by income when dealing with multifamily (5 units plus), but at what point do upgrades/renovations increase value? For instance if I have an 8unit that has old painted cedar shakes and original 60s windows. How can I calculate my return for that improvement, if I replace siding with vinyl siding and put in new windows.... assuming this improvement won’t increase my rents.

@Russell Brazil Thanks for the pointers. So Net Annual Income, is net income after Cap Ex, Debt Service, Property tax (everything else)?

Is NOI and Net Annual Income the same, except Net Annual Income is less the mortgage payment?? Using MB's 10 minute offer in his SDA and just got started... Im sure this answer is in his curriculum, but Im on here anyway