Posted by brandoncbsre on February 20, 2008 at 10:01:48:
It just like any other investment property. Take a look at the expenses and see if the income covers them and provides for cashflow. If the building is already rented be sure and get a copy of the lease for review. Most banks will require 20-25 percent down for a 15 or 20 year loan. If you need any further help post the details and I will see if I can help.
Good Luck
Highest and best use of office bldg? - Posted by MaxC
Posted by MaxC on February 01, 2008 at 05:36:04:
I am considering a 2K SF office building (different than the “metes & bounds” building). I can get it for $30K. A rehab might run $20K. It just doesn’t need too much.
It is in an older depressed downtown of a small town 30 minutes outside of Dallas. Most of the businesses have moved to the highway about .75 miles away. The intersection there is booming, with at least 20 new (within the last 5 years) retail and related stores, including WalMart.
Overall population growth is at least 2-3% a year. However, downtown is really hurting. The building is @ 30’x70’. Only street parking and it’s sides abut directly against similar buildings on either side. Perhaps half the buildings within a block are occupied with 2nd-hand shops, craft shop, an other transient businesses.
This area could be revived with the macro-trends in the area looking solid for years to come.
Could it be flipped to an owner occupant business where location doesn’t matter to customers, but owner wants cheap and near home? Or near employees? If I had to, I could hold and market it for a good while since it is so cheap.
Or rent it for $700/mo triple net? To whom?
Or?
What kinds of businesses could represent the highest and best use?
Re: Highest and best use of office bldg? - Posted by brandoncbsre
Posted by brandoncbsre on February 01, 2008 at 15:45:07:
I own a similiar but larger building in a town alot like the one describe in Indiana. Good tenants in these downtown buildings in my area are real estate offices, insurance agents, hair salons, etc. I dont think you will find too many people wanting to lease NNN, but you still may have a decent cashflow depending on the rents in the area and the tenant.
Good Luck
Re: Highest and best use of office bldg? - Posted by catengineer
Posted by catengineer on February 19, 2008 at 17:12:18:
I am looking at a very similar property in a small town in Illinois. I am new to commercial property investing. How do I evaluate this to make sure it’s a good deal? My goal is to generate cash flow.