Warehouse Rental Space Deal analysis
Hey guys and gals
I have a commercial property that i plan to build some rental space on. Id love it if anyone could try and poke some holes in this deal, and tell me what i missed. The bank i have been talking to wants to do a construction loan but they aren't so forward about the details of the loan being loan term, interest, down payment, and if i can roll my first 6 month of loan payments into the deal. SMH. Any advice on lenders would be much appreciated. sorry for my lack of experience posting but i'm learning:)
Thanks
Kyle
8181 Wickson Ridge Commercial rental
2 - Metal Buildings approx 8400 sqft Each
8 - Units approx 2100 sqft each
.50-.75 per sqft of rents ($1200.00 per unit)
Costs For building (based off my High Quotes) - $100,000.00
Parking lot - $50,000.00
Septic System - $15,000.00
Electrical - $20,000.00
Metal Building - $100,000 Delivered ($50,000.00 Each)
Concrete and flat work - $128,000.00
Land - $36,550.00
Install Building - $10,000.00
Concrete Water Drainage - $36,000.00 (optional has to be approved by developer and neighbor)
Unseen cost - $20,000.00
Total
$415,550.00
Rents per month
$9,600.00
ARV with typical cap rate(10%)
is $860,000
Loan Payment with tax and insurance
$3,000-$3,600