First post, first deal - How did I do?
So I recently discovered BP while researching how to scale out/expand property investing. In the short time I've been here I have learned a lot...too much! 6 months ago I spotted a commercial property on craigslist and I now own it! I did run some numbers before the purchase and was happy with the results, but I wanted to get an expert opinion.
Building is roughly 6000 sq ft, 3 story with a commercial unit on the main level and 4 apartments.
Current rents:
Commercial space - $500
Apartments - $300/ea (Tenants pay all utilities)
Light on top of building that banks rents $126
Total: $1826 per month
Purchase price - $92k (land contract)
Down Payment - $10k
5.5% interest on 20 yr mortgage with 3 year ballon
Mortgage payment: $564
Taxes - 3300 annually
Insurance - 300/month
A few things to note:
- Rents need to be raised. Rents range from $300 to 900 in the area.
- The city offers a neighborhood facade program where they pay 66% of exterior enhancements up to $45k
With that being said, did I do ok?