Updated over 6 years ago on .
Buying a Post Office with a 2/1 apt...Thoughts?
Hi folks! Im new to the whole real estate investing market and came across what I think would be a good deal. There is a rural small town Post Office with a 2/1 apt over it. The Post Office has 2 years left on its lease with 5 year options. It rents for $1250 month. I emailed the realtor and he is not concerned about the lease. The PO has been there for a long time and is not going anywhere. Is there a way to check and see if the PO has a replacement schedule? The apt is un-occupied and the current owner has no interest in it. They say they get enough income from the Post Office. Asking price is $199,900. Cap is 7%. Running the numbers as is is shows negative cash flow. Tax records show an assessment of $119,000 over the last 5 years. The asking price seems high to me. My numbers with a $180,000 offer would produce a positive cash flow of $250, not including the apt, and using $10,000 to rehab the apt for use. What am I missing and thought please.