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Considering my first commercial property....is this a bad deal?
Hi BiggerPockets community!
My husband and I are considering our first commercial property (1129 Pearl Street, Denver CO 80203). It's listed at $1,170,000. To meet an estimated 358k downpayment, we would pull $243k out of our other rental property and pay the other $115k in cash. The property has a new boiler and a relatively new roof (2012). Current rents on all 5 units gross $6924 monthly, but market rates are more like $7025 and they are all updated. It is a great, walkable area that is highly desirable in Denver. The location is AMAZING with this place.
Is this a bad deal? I know that the 1% rule is very important to the BiggerPockets community, but that's just unattainable in Denver. What questions do I need to be asking?
Also, we are currently renting a place at $1400 in the middle of this area. We get a 1-car garage, fireplace, huge kitchen, and our rent is WAY below market. Would it be a good idea to move into one of the units in this building, or stay in our current place and rent out all 5 units? Is it a wash either way?
Here's the brochure for the property:
http://images2.loopnet.com/d2/ZTz2OTUqUC_YhaZmxQfZ...
Thank you ahead of time for your input, we really like this property but don't want to jump into something that's going to be a bad investment!