Updated almost 5 years ago on . Most recent reply
- Residential Real Estate Investor
- Kansas City, MO
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6 Unit (3 commercial, 3 residential) in Independence, MO
Keeping with our new thing for buying commercial properties in Independence, MO (of which, this is the second, sort of) here is another recent close we had that my brother @Phillip Syrios found.
6 units; 3 houses and 3 offices, 7200 sq. ft. total. The three houses were rented already (for average of $800) and the three commercial were vacant but only one needed significant repairs. Purchase price was $270,000 with estimated repairs (which are almost done right now) of $45,000 (and another $10,000 in TLC for the residential units when they turnover).
There aren't many good comps for a property such as this, but most small offices are selling for more like $60-85/sq. ft. and we'll be all in for less than $50. Also, we think the total rent can get over $5000/month which is close to 1.5% rent-to-cost and our estimated cap rate is well over 10. So I think this one, while odd and probably not the easiest to resell, will cash flow like crazy.
