Shafiq Hirani CCIM shows how cleaning up a property's books can add $350,000 in value without renovation. Six add-backs like personal expenses and miscategorized repairs boost NOI by $21,000. Proper documentation of already-paid costs unlocks real value.
Here's what the file work is worth. A typical small building cleanup surfaces about 6 add-backs: personal expenses that were never separated, one-time legal or repair costs, a capital item sitting in the repairs line. Call it $3,500 each. 6 times $3,500 is $21,000 of NOI. At a 6% cap rate, $21,000 is $350,000 of value. And notice you did not renovate anything. You recategorized and documented expenses you had already paid.
