Commercial property purchase

[Account Closed]

Hello BP,

I have buddy in a situation who needs some advice. Him and his wife own a lawyer firm and they are looking to expand to a larger office. A commercial property they are looking into is for sale for $330k but needs about $75K of work. I suggested he get some sort of short term/ interest only loan and rehab it and refinance after. The thing is currently market rate for a similar unit is only $410k. Is he overpaying for this property? Are there any other options he should look into?

Thanks

[Charles Carillo]

@Account Closed

If I was going to do $75k worth of work to a property I want some sort of return. Why would someone deal with a renovation if they can buy a unit with permanent debt from the beginning that requires no work for the same price? The unit that needs work is probably worth $260k-$280k.