Commercial Property for a Newbie- good deal?
Hi everyone, I'd like advice on how to proceed.
Its a commercial condo on a downtown mall in a small city. Prices are generally high here, and cap rates don't get too high.
The tenant (long time coffee shop manager has been there 7 years) signed a 10 year lease 1.5 years ago paying first 6,500 (0-60 months), then 7,000, then 7,500 (90-120) a month. Tenant pays taxes, utilities, condo fees, repairs (I think, although I'm sure some damages get pushed back to owner) etc. (I will have to do some research to make sure there isn't anything else I might be responsible for).
This gives the property a cap rate of first 7.8%, then 8.4%, then 9.0%. And this is with his posted asking price.
What else do I need to look at, who should I talk to, and how do I find out if this is good deal?
(I also need to find some MAJOR financing :P)
ANY advice is welcome!