First property advice.

2 Replies

I am new to BP and trying to get my first property.

Price is 280000,

Has 3 offices, each renting about 1000 per month total income 35,700, Class B property, reasonable chances of renting it.

Expenses 9,223 including tax, insurance, termite, water, assician fees etc.

NOI 26477.

Should I purchase it or not?

There is no way for somebody to answer that question here in a forum post. Is the NOI of the property acceptable to you? Are there any other office buildings nearby that are vacant? Are these long term leases? Are the rents above or below market? Are you comfortable financially if 1/3 or 2/3 of the property becomes vacant and you have to carry it with only one tenant for six months? Lots of questions need answers before you make a decision. At face value it looks like a good opportunity. The NOI in my opinion is a little low but I don't know the market in Mississippi. Maybe that's a great deal there. How long has it been on the market?

One thing to do is go back and edit your post and include your city/county and state so this post will appear on the radar of investors in your local area. 

Thanks Bob for reply,

To answer your questions, there are about 25-30 buldings in surrounding area, most of them are rented, I saw couple of signs for rent and couple for sale.

These are 3 yr leases, rents are at par with market 12/sqft/yr.

If it is short term vacant I can pay for it from my salary.

it is a Mid income area.

Thank you for your advice! Looking forward to more info.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here