Am I missing aything on Mixed use deal?
there is a mixed use building in my hometown that has been open for three years. I found out threw two friends of mine that there is two businesses that have asked to lease it but the current owner wont lease. they asked me if i would consider buying it and leasing it back to them. It has four apartments upstairs and a 4000 sq ft store front. it has not been updated in over 20 yrs. that's right up my ally and i really enjoy that building. here is the stats
Asking price $85000
Electrical update to code, bid for $23000 owner says she would pay $10000
Apartments would take around $10000 each to update
Need a new roof and furnace in 5-10 years
current rents with new tenant will be around $2400 all updated could bring around $3000.
Water, electricity, gas run about $600/m
Id love to get it at $60000 and plan to update apartments as tenants move out with a goal of being fully renovated in 5 years. ARV would be around $155,000
what other things should i think about with a mixed use building? I think this deal would be a great long term hold.