Updated over 5 years ago on . Most recent reply
How would you develop vacant commercial property !
How would you cash flow a small spot of vacant commercial land! Creative thoughts or old school know how appreciated!
My thoughts:
I recently acquired a small piece of vacant commercial property.
Got it at a steal (got from owner for taxes owed), he just wanted to sell it to cover the debt. All said and done I’m the deal under 2k, value as noted is 10-12k.
The only reason I got it was I wanted a cash flowing commercial property, as I believe the long term value is much more.
It’s located on an extremely busy road, with 150 foot of road frontage.
It’s not very large about 7500 square feet (usable space) 150x49. It’s actually about .25 acre, but not fully usable (hillside)
I have done my due diligence and spoke to the City zoning about conversation from vacant land to building something, which went well.
My first plan ( I’m a hardcore DIY guy) is to bring in my skid steer and dump trailer and grade it all level with the existing blacktop that’s there (150x25).
Then Plan A is to build 5-10 self storage units 10x20 and possibly 5 - 10x10 or 8x8.
I’ll probably be into this for about 15-25 k (varies with how nice the place is at completion.
Then rent our for About market rate (5-10% higher)
Due to ease of access and very convenient location.
Which would cash flow about $800-1000 a month.
So 15-25 months until it’s paid off .
Plan B. The selling gave me a contact for someone wanting to rent it for rent to own yard barns. He wants to rent as is for $400 a month.
What would you do ? What other ideas would be able to work here !
Interested to see what you folks think.