All Forum Posts by: Abhishake Chhibber

@Andrew Fielder, Good catch there regarding the mortgage and interest.  I made an error in the calculation. The updated numbers are below.  I will essentially be breaking even with 0% down. 

The owner is very likely to finance 100% of the property at 5%.

I'm looking at this a long term play to build equity, and there is a small chance for appreciation.  The building is a bit old so it doesnt fetch high rent.  The buildings around are relatively newer and more attractive.  I will inquire regarding the market rent.  What do you think with the updated numbers?

@Sarah Ziehr, No i do not own any of the businesses in the building.

utilities are paid by the tenants.  Maintenance includes lawn cut, snow removal.  I need to inquire about trash pick up.

Hi folks,

I'm new to the BP - thought I could ask experts for some advice for a commercial property I'm evaluating to buy.   This will be my first commercial property, and I don't have much experience in commercial so any guidance/help would be much appreciated.

Property is a 3 unit commercial building with a 2 restaurants and 1 laundry mat.

Here are the financials:

Sale Price of the property: $450k

Rent revenue: $54,600

Mortgage & Interest at $5% interest rate for 20 yrs: $28,992

Annual taxes: $7,053

Annual insurance: $1500

Annual maintenance: $1,000

Annual management/repairs: $5460

Net Income: $10,595

Am i missing any other major expenses?  I will not be outsourcing the management for this property, but have added in 10% of rent revenue as contingency expense for repairs, etc.  

From a financing perspective, the deal will be financed 100%.  

What is your take?  Is this an attractive deal?  Reason not to purchase?  What strategy should i follow?  Would you purchase this deal, given the financials?  Why and why not?

Thank you in advance for your help.

Abhishake

I would love to hear more as well.  Please contact me.