Importance of a lease audit Marketed Monthly Rent: $14,055 Actual Rent Based on Leases: $14,780 Annual difference = $8,700 Market cap rate 7.5% = $115,000 of additional value I found this during DD on our latest deal. Fun surprise to discover.
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@ToryJSheffer You performed your own lease audit or how does that work on your side? Curious.
@ToryJSheffer Interesting. I’ve been trying to figure out how X amount of value add contributes to how much the total property value will increase. So it’s safe to say the added rent compared to the cap rate is a good way to determine added property value? What determines local cap rate?