1st Commercial RE deal, is it a good deal??
Hi Gang,
I am in the process of purchasing my 1st commercial Deal and I wanted to run the numbers by you all and see what you think. I do not have an inspection yet but I believe the condition of the property to be fairly good. Obviously that will affect the value and I will post once I get the inspection.
It's a 9800 SF 1 story office building in Broward county FL built in 1980. Taxes are 33k/year. Currently there are 3 tenants, the largest unit (5300SF) is also the owner of the building. All tenants are medical offices. The Largest space/current owner will actually be leaving for me to move my business into the space but for what its worth their rent is $9500/month. The other two units which are 2300SF each rent for $4500 and $5900 (this includes CAM). The tenants have 3 and 5 years left on their lease and one has a 5 yr option. The purchase price is $1.9million
So... thoughts?
What questions should I be asking and what should I be looking at?
Thanks in advance!