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The Seller’s Tax Bill Is Not Your Year-One Tax Bill
The offering memorandum opens to a tidy expense page, and the property-tax line looks settled. Last year’s bill is printed in black. The trailing statement carries the same figure. It is tempting to drop that number into year-one net operating income (NOI) and move on to rent growth. That is where discipline tends to slip.…
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How to Read a Rent Roll Without Believing the Summary Tab
A clean rent-roll summary can look finished while the unit rows tell a different income story. Here is what we read first in the rows, and what we ask the broker, before underwriting.
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The Five Numbers We Want Before Believing a Value-Add Rent Story
The offering memorandum lands with the line that sells half of these renovation packages: “In-place at $1,100. Renovated comps asking $1,350. Two-fifty a month of upside.” Multiply by unit count, annualize, and the business plan starts to feel inevitable. If you are a passive investor reading a pitch deck, an owner underwriting a purchase, or…
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T-12 Normalization: The Seller’s NOI Is a Starting Point, Not the Answer
A multifamily T-12 shows reported history, not necessarily buyer economics. Here is how revenue and expenses should be challenged before trusting NOI.
