Investor · Tallahassee, FL · Member since 2017 · 33 posts · 31 votes
Old mini mart, gas station for less than $5k for sale in small small old town. Owner has had it for 2 years, converted to 1 bed apartment that is renting for $200/month. Tenant wants to stay.
He tells me that the bank he bought it from told him the underground gas tanks were removed in 2012 and you can see the spot in the soil where it's been disturbed. He has no paperwork on the tanks.
Rural rural IL.
Would I have to get an environmental survey? Is this one of those run away from that deal deals?
Investor · Sioux Falls, SD · Member since 2016 · 102 posts · 113 votes
9y
@John Baughman How much is an after hours furnace call in rural, rural IL? What about a plumber when a pipe bursts? Can't be that much different than here in SD. I'd be worried $2400 yearly revenue is not going to cover my expenses and capex. Vacancy scares me in rural, rural as well.
I would also contact a commercial broker (and/or call an environmental company) about the possibility of performing an environmental site assessment and if it's necessary. It may be a worthwhile deal but depending on the Phase of the assessment required, it could cost a few thousand dollars minimum - you can write this into the agreement of sale as a contingency to cover the necessary costs.
Kansas City, MO · Member since 2017 · 24 posts · 2 votes
9y
Make sure the soil samples are cleared so it doesn't come back to bite you later. I have seen the Iowa DNR come back later on dirty samples and sometimes it falls on previous owners and sometimes on the current ones. Either way it needs to be cleared and documented with the state.
Investor · Sioux Falls, SD · Member since 2016 · 102 posts · 113 votes
9y
@John Baughman How much is an after hours furnace call in rural, rural IL? What about a plumber when a pipe bursts? Can't be that much different than here in SD. I'd be worried $2400 yearly revenue is not going to cover my expenses and capex. Vacancy scares me in rural, rural as well.
Investor · Tallahassee, FL · Member since 2017 · 33 posts · 31 votes
9y
Chris Pohlson that's a great question. It's rural rural. But 15 miles from a city of 2-3000. And 30 minutes from a city of 40,000. Which as everyone knows, 40,000 is HUGE in rural Illinois.
I agree 100% that vacancy worries me too. But I'll be in it so cheap, my concern is a surprise bill 10 years from now with nasty soils.
Gonna call a lawyer and then negotiate the crap out of it. He is leaving the state and needs cash.
Investor · Tallahassee, FL · Member since 2017 · 33 posts · 31 votes
9y
I found documentation that the tank was removed in 2012 on the state fire marshall's website, and I spoke with Illinois EPA and they acted like they weren't interested in sites like this...