Hi, my first time posting here, just wanted to get feedback on a deal I am currently interested in. It is a small retail storefront property, 1800 sq feet being sold for $490,000, net income $30,000/yr with cap rate 6%. The building is facing a big street, near major intersection. There are 4 tenants who "were there for a long time", but no actual lease agreement in place - based on a handshake. I am planning to get info about expenses, actual lease payments. Any other information I should focus on? Thank you.
I'd also get a bank statement and check how often they pay late. Also look for expenses you are not predicting.
Being a commercial value the owner should have a separate bank account for this property.