Prelim thoughts on 4 unit commercial plaza
Hey BP,
All I've ever purchased to-date are residential (single and duplex) units. I have a seller who offered the following to me. What questions should I be asking? Any thoughts or feedback on this deal would be greatly appreciated.
FROM SELLER: Please see attached leases for 7,000 sq ft office space/retail complex. Excellent rental history with tenants. Two of the four tenants have been there 20 years, the third for 10 years. The fourth is a newly signed tenant who invested over $20,000 in renovations for their space. Total rental income = $84,000 per year, with total expenses of approx. $11,000 per year. There is a net operating income of $73,000 per year.
Sales price = $750,000.
(Tentants are: pizza chain, dentist office, salon, juice/smoothie bar)