Updated about 7 years ago on . Most recent reply
Our first Commercial Property
Hello, we are new to commercial investing and wanted to throw this possibility out for opinions...
A commercial building for sale for $739,000. A long term tenant, lease NNN that expires in 2024. Current NOI is $52,218 with 2% annual escalations, cap rate 7% on existing NOI. Interest rate with 25% down fixed at 5.5% for 5 years. 20 year mortgage.
Would appreciate any and all opinions!
Most Popular Reply
The main question is what happens in 2024. Some smaller commercial buildings have buildings / build-outs that are obsolete and hard to rent out. Imagine owning a Taco-Bell and the company pulls out after their lease expires. If this is an office building, B quality or better, you should be fine.