Disclaimer: I am just starting out in RE, so bare with me.
My father owns a piece of commercial zoned RE in Little Rock, AR. He ran a small restaurant out this place, but no longer is in business. The property is located on John Barrow Rd. There is no mortgage and it is currently rented out to a pop-up restaurant on a month to month basis. I seriously doubt this restaurant lasts that long, so I would not count on this income. The last time I checked, comps valued the property around $90k-$100k.
What would you do? Would you figure out how to consistently cash flow the property and purchase it from your father? Encourage your father to sell?
It is worth considering holding it. especially if it doesn't owe you anything.
the area is not so bad and in fact, some local investor think it has reasonable growth potential. the best part is Between Interstate and Markham St.
The more south you go the worse it gets....
i don't know where your father's located but if you want im happy to have a look with you and discuss.
I own commercial properties (retails) and with the right location and tenant you can do well with it. the key is to lock them in for longer leases, have a triple net lease and make sure they need to give you at least 6 month notice if they don't want to renew the lease.
Yeah I agree with @Hadar Orkibi . Might be worth holding. We buy commercial retail. I suggest calling some local commercial property leasing agents/management companies and get their opinion on rentability. Ask on here if anyone has any referrals. It's definitely worth a few phone calls.
@Aaron Wade pm me the address if you want and I can do a drive by.
Talking to a good leasing broker could be an option For assessing the potential market rent and actual demand.
I can refer you to few....