August 20, 2009
Reward Loyalty or Chase the Dollar
We are in the process of acquiring two different rental units on the same lot… We based our capitalization on very conservative numbers and static rent that will remain constant for several years. The problem is: The current tenant (who is the owner’s ex-wife) has been there for several years and is not paying market rent. She is actually paying much less than what we estimated is needed for the units to capitalize in seven years.. a number...