Mixeed Use in the Ironbound, Newark
Hello everyone!
I am looking to go into contract with a partner (50/50) and I was wondering if I could have any feedback. I have been researching the area for almost one year now and I see lots of potential, the building is about a 12/15m walk to Newark Penn Station. Also, a good opportunity to turn these apartments into 3BR as they have a "spare" room in the back that is currently used as a "sun room", not completely enclosed, but that could easily be.
Two units have been renovated in the last two years and two would need about $60k to be renovated and turned into 3BR units. The retail space is being sold to the manager that has been working with the current owner/landlord but its name will belong to the new owner of the building, meaning if he fails the business I could resell it (he will have no bill of sale as he is leasing the equipment from the current owner and I would be holding the name of the business myself as the new owner).
I'm slightly apprehensive about interest rates going up too much after the first fixed 5 years, as this would eat away a lot of my cash flow, or my taxes going up tremendously with the renovations and adding a third bedroom in two units.
Any thoughts? Also, if you can refer a good lawyer and commercial mortgage broker in the Northern NJ area that would be much appreciated!
Cheers,
Rez