Buying/Landlording commercial in a very small town

Buying/Landlording commercial in a very small town

Investor · Northeast, WI · Member since 2017 · 65 posts · 9 votes

Hello BP! I have an opportunity to buy a property with 4 business spaces and 2 rentals. I've never owned commercial but the price is so good I'm having a hard time not passing it up. The catch is it's located in a very small town and somewhat depressed area. The numbers work well and I have room to raise rents but I'm concerned about the local economy.

Does anyone own property like this that could share their experience?

I'm also wondering when owning commercial how much do you do to help the businesses? For example right now one of the businesses spray painted their name on the window with washable paint and they didn't do it very well. I might be interested in setting aside money or allowing them to pay back a small loan for window stickers so they will look legit. I figure if they're successful I get my rent and everyone is happy.

Any information is appreciated,

Thanks!

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  • Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    7y

    It depends how close it is to a major market. 30 miles would be the max for me.. I own commercial rural and it works. Tenants were willing to travel to save a few hundred a month.. 

    But if you are in smack dab in the middle of nowhere and its a deal I would still pass it up.. You will likely have the same issues when you want to get rid of it..

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