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Kieran Hanlon
  • Philadelphia
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Multi family Rental Property with Commercial Unit

Kieran Hanlon
  • Philadelphia
Posted

Hi - I am looking at a triplex and the first unit is a local grocery store. Since the two residential units make up more than 51% of the square footage, I still qualify for a FHA loan.

The grocery store is renting at 1,100, which is $300 below max rent. The grocery store's contract ends 1/1/2022.

I can still make a profit of $300/month (that includes saving for repairs, capex, vacancies, property mgmt etc).

Is there something about this grocery store that I should be weary of? Any thoughts? other than the fact that they're locked into an under market rent for the next 4 years. 

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