Rental Property Investor · Rochester, NY · Member since 2018 · 12 posts · 1 vote
Hello , So I purchased a small 2- possibly 3 unit commercial property on a very busy and visible street In Rochester NY , I got my hands on it from the Monroe county foreclosure auction got 25k but the catch is it owes 40k in City taxes which can be put on a payment plan ... My first thoughts was to remodel and upgrade the place , Rent it out as a barbershop on one side which it used to be and already set up to be one then run a Tire shop out of the other side (Already set up to be from previous owner) but my question is should I Upgrade it , maybe put another 20k in it and flip it with tenants in it already Bringing in cash flow ? I could easily get 1700 a month... 1000 for tire shop side and 7-800 for barbershop ... The actual building structure is 2800 square feet with a 3500 Square foot parking lot ... The city assessment is 70k but the pricing of commercial spaces that are zoned for Auto I believe is very high , I’ve seen a similar structure in a worst area posted for 185k , Soo some guidance would be nice from experience
Specialist · Miami, FL · Member since 2015 · 5 posts · 1 vote
6y
Are you positive you purchased the 1st position mortgage in foreclosure?
I would order a title & lien search first & probably get title insurance if you don't find anything major besides taxes. Also need insurance on the property to protect your investment.
If you are not sure what the value is, a Broker Price Opinion from a local commercial realtor is fast & inexpensive to give you an idea if it is worth upgrading.
Could also sell it with owner financing & become the bank