All Forum Posts by: Shachar Avraham

Hey BP! Do any residential property owners here generate extra income through placing ads (like in medium sized OOH billboards) inside their buildings like in the common rooms, mail rooms, laundry rooms, elevators, etc? Or do you steer clear of placing any ads in your buildings?

@Aaron K. Totally agree, thanks

@Mark F. Yup, I saw that in my research. Is a landlord required to renew the tenant at the time of lease expiration or can they get a new tenant?

@Lien Vuong I like your thinking there. What expenses would you recommend tacking onto the tenant?

Hey BP Community! A 10+ unit multifamily deal I'm underwriting in NJ is in a location bound by local rent control laws. The rents vary amongst the units and are under-market so I would want to increase them. What is the best way to do that given the rent control laws? Are there strategies I could implement to increase the rents and force appreciation on the building?

@Eric Castelli Nice. I'm looking at larger walk-ups at the moment. How's the tenant base? Are you able to increase rents or is it staying flat?

@Samuel Glantz I just got back from there last night. Would be happy to share with you my experience!

@Eric Castelli What type of properties do you own in South City?

@Kyle Eckert

Yet there are a handful of vacant lots in that area which could frighten potential investors.

I've also noticed several for-sale properties in that area marketed as being part of Central West End. I think that's a stretch at this point, but perhaps that's why they're being listed at higher prices.

West End appears to be surrounded by decent neighborhoods in all directions with the exception of what's north. What're your thoughts on the four to five block area just north of Delmar Boulevard (between Goodfellow Blvd & Hodiamont Ave)? Is the tenant demographic getting better? Is the effect of the revitalization of Delmar Blvd spreading north? Do you think younger people are moving in?

Thanks @Wayne Brooks. Much appreciated.

Hey everybody,

A bunch of the OMs I'm getting sent include a principal reduction in the financial analysis. It's factored into the cash-on-cash return and increases it so it makes the returns look much better and the property more attractive in certain ways.

What is this principal reduction?

Are principal reductions typically offered to lendees?

Why do brokers keep including it in their OMs?

Should I factor this into my own underwriting?

Thanks!

Love it @Collin Schwartz! Wishing you continued success!