Bill Peterman from Chester, NY
posted about 18 hours ago
I'm starting to analyze a few possible deals and this is one I just came across. 2 bed/1 bath upstairs currently renting for $675 however, this is way below market and I can easily get $1200/month. The resident is on a month to month lease. The downstairs is a small grocery bringing in $1000 per month with a scheduled $100 increase each year until it reaches $1300. The tenant has a lease till 2023. Once I increase the resi it should bring in $2200/month for the first year and more moving forward. Residents pay all utilities as of now and commercial pays own water as well. See below screenshot. Does everything look ok?
I also included an updated report if I can get the property for a discount and these numbers look WAY better. Any suggestions?
Report if purchase price $110000
Assuming it's zoned commercial or mixed use with the grocery downstairs, this is likely to require commercial financing.
Not necessarily a deal killer, but you will need to find a commercial lender willing to underwrite you based on global income, experience, etc, and you will not get a 30 year fixed rate mortgage.