All Forum Posts by: Rajat Bhadauria

Hi Michael,

Thanks for your response. 

Almost all the leases will end in 2030. Let's say I don't increase any rent until then, then what are my options to increase the valuation of the property? I am asking this because I want to add some equity to the property and refinance in a couple of years.

That's how I analyze a residential property. Maybe it works differently for a commercial property, and that's why I am here looking for guidance.

Really appreciate all the inputs!

Hi Everyone,

I am looking to invest in a commercial property for the first time and need some advice from all the pros here. It's a 7-unit shopping plaza, all units are rented to local/ neighborhood businesses. With current rents and purchase price, it has a cap rate of 8%.

CURRENT TENANT SITUATION:

- Main tenants have been at the same location for 5-10 years.

- These are the tenants who are paying 85% of the rent, and occupying all bigger units.

- All the leases for main tenants are signed till 2030 and also specify the rent they will be paying until 2030, without any clause for rent increment. So, same rent for the next 7 years

- None of the leases are notarized. The seller's agent says that since they are not notarized, legally they are considered month to month and gives me an opportunity to make changes in rent or tenant

QUESTION: 

Considering the above conditions, how do I increase the valuation of this property? I was thinking of the following two options, but not sure if this is doable or not.

1. Increase the rent - As leases are not notarized, legally I should be able to increase the rent. But my agent says, in this case, if the tenant decides to take me to court, the court will most likely favor the tenant

2. Find a new tenant - If the tenant does not agree with increased rent, find a new tenant (maybe a national franchise like Chipotle), with higher rent. OR, open a new business like a laundromat as this location is good for that. Again, this is possible only if I am allowed to ask the tenant to move out.

I would really appreciate any input on this. Thanks in advance!

Hi Everyone,

I am from Cincinnati. I bought a building (just a shell) in an upcoming area, where the city is running a multi-million dollar project to upgrade the neighborhood. I bought the building in Dec first week. On Jan 25th, I found that the building was demolished by the city a week back. 

Checked with the seller's agent, and she said she had called the city and there was no demo order at the time of signing the contract. And I never received any notice from the city since the time I purchased the building. My address is updated on the auditor's website, so there is no problem there.

Anyone has any idea what is going on? What are my options now? Shouldn't the city notify the new owner before demolition? I have an appointment with the lawyer but wanted to check if anyone here has any suggestions. Any help will be good.

Thanks in advance!

The basement 2 entrances, one door goes to the backyard, and another one to the kitchen. So as far as the second exit is considered, it should be fine. But what about the gas furnace and water heater? do they cause any problem?

I have a 3 bed 2 bath unit in Cincinnati. There are 5 people living in it - 3 kids, 2 adults (Cousins). both adults are on lease. One of the cousins decided to move all my furniture in the basement and use the basement as her bedroom. The basement has a door, which opens to the backyard. It also has a Gas furnace, gas water heater, electric washer, and dryer. My question is - Is it allowed to use the basement as a bedroom? Is there any liability for the landlord?. BTW - the washer started leaking once and ruined my carpet and couch that they moved into the basement.