Help me make the right desicion please!

[Fernando Cardenas]

Hello Guys,

I’m new here and was hoping to get some help to analyze this deal:

There’s a commercial building that’s being developed in a great area and will be finished in October 2018. Cost of the small office I’m looking at is now $75,078 including a parking spot that can be rented as well. Price is supposed to appreciate around 30% once the building is complete in and offices are delivered.

Bank is asking for 30% down, 11% for 10 years. Potential rent for the office is $850 and $80 for the parking spot. Problem is that once financing is approved maybe next week, I will have to start making monthly payments for mortgage until Oct 2018 when office is delivered and ready to be rented.

Once rented, cash flow should be around $30/month…

1.I'm having problems determining the ROI for appreciation

2.If the property value will be 30% in oct 2018, would you still go for it even with such a low cash flow?

Thanks for your help!