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Updated over 1 year ago on . Most recent reply

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Tyson Curtis
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Buying my first commercial property.... Is this a good idea?

Tyson Curtis
Posted

Buying my first commercial property. $1.8 million / 30,000 sqft / annual rent $175,000 .

Currently negative cashflows $4k a month on a new 20 year term loan at 10% and 20% down.

But, currently only half the space is rented out.

Talk to me, please

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Bill F.
  • Investor
  • Boston, MA
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Bill F.
  • Investor
  • Boston, MA
Replied
Quote from @Tyson Curtis:

Buying my first commercial property. $1.8 million / 30,000 sqft / annual rent $175,000 .

Currently negative cashflows $4k a month on a new 20 year term loan at 10% and 20% down.

But, currently only half the space is rented out.

Talk to me, please


 I used to have a boss who would say " If there's doubt, there is no doubt" I think that applies here. 

Questions that come to mind for me:

How long can you float the -$4k/month? 

How much experience do you have finding and vetting retail tenants? 

How much do you understand the drivers of a successful long term retail business? 

What's your investment thesis for infilling the vacant sq footage w/ a tenant that will compliment the existing tenant?

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