Evaluating a almost empty mixed use commercial property

3 Replies

I'm exploring a banked-owned mixed use property in Florida. Its on a main street with two storefront offices, 3 residential units at the back, and comes with a lot at the back that its zoned multi-family but it will need a lot of earth work to be developed. The lot that the building is on is zoned mixed use commercial. 

Only two res.units are rented. Its been on the market considerable amount of time.

How can evaluate an empty commercial opportunity? Currently they are asking 195K, and by running numbers etc I will start my initial offer 135K with the intention not going more than 160K. The building needs around 15-20K to be brought into very nice condition.

Originally posted by @Joel Owens :

Is it a local, regional, or national bank? If it's local or regional sometimes they will finance the property at favorable terms while you turn it around.

This will help keep your cash to put into the property versus a large down payment.

Its Florida Community Bank. Honestly I didn't ask the broker because I have a private investor. My issue is what percentage of the overall after turnaround value would be fair deal?