Philadelphia · Member since 2018 · 1 post · 0 votes
Hi - I am looking at a triplex and the first unit is a local grocery store. Since the two residential units make up more than 51% of the square footage, I still qualify for a FHA loan.
The grocery store is renting at 1,100, which is $300 below max rent. The grocery store's contract ends 1/1/2022.
I can still make a profit of $300/month (that includes saving for repairs, capex, vacancies, property mgmt etc).
Is there something about this grocery store that I should be weary of? Any thoughts? other than the fact that they're locked into an under market rent for the next 4 years.
Specialist · Denver, CO · Member since 2013 · 134 posts · 81 votes
8y
@Kieran Hanlon is there an opportunity to replace the grocery store with another business once their lease ends that would significantly increase the value of the property? I think one of the greatest opportunities in Real Estate is finding commercial businesses to plug into them.