Analyzing a cheap deal in an expensive rent area

[Brennon Atchison]

file:///C:/Users/Owner_2/Deskt... This deal I found is cheaper than everything else in my area. I am from Ontario Canada. Also it is a restaurant. The price has dropped twice since it has been on the market... it has been on the market for 2 months. It stared at $120,000 and has dropped to 89,000. It is right in the downtown core. I am going to ask the realtor about the business history and try to meet the owner of the building and the owner of the business to get more info. My city is an expensive renting area. Crappy houses go for like 200,000 to 300,000 and houses in blue-collar areas can range from 450,000 to almost 700,000. Rent in the lower ends is 1,100 to 1,400/month. So with my estimations of $1300/month for rent and all the other estimates you will see in the analysis I will end up with $378.60 monthly cash flow. That's 22.50% cash on cash ROI. The renters would be paying the utilities. Now I am just looking for feedback from you experienced realestate investors. Thank you guys for your time and your much appreciated help and advise.