All Forum Posts by: Doug Poff

@Account Closed - another consideration may to niche market to a single dentist or orthodontist practice; or a sub-practice location of a larger practice. A commercial broker can usually find a few looking to expand. The high traffic count area around retail centers you describe are usually their target location - and commercial banks are rather friendly in loaning to established practices. I have seen quite a few SFH in our area placed in such converted homes; you would have to build in the upfit costs into the loan, but if the property is in overall good shape, a few cosmetic and ADA compliance touch-ups, with some interior modifications (mostly plumbing) could work.

This idea probably abrogates the non-compete with McD's - but what do you lose if you breach the non-compete (parking?), and is it formal/legal or informal? I have a similar agreement with one of my professional tenants, but he understands it only legally applies to the parcels that I own as a member of the LLC for the building he actually is in; and only informally (i.e. legally unenforceable) for nearby properties that I am also a member/owner in, though in different partnerships.

Bottomline, on the informal line, I agreed we will not actively market to his competitors, but if an agent brings one, or we are approached independently, we will consider it.  This agreement also provides good leverage on the lease renewal negotiations with the professional.

Anyway, for someone in a similar situation but without the non-compete complication, here's a successful idea that I have seen a local entrepreneur do:

https://www.tripadvisor.com/Restaurant_Review-g609...

As you can see, there is minimum lot development on your part if you can find a local restaurateur interested in a similar set up.  Where I am, there are also lots of 'trailer BBQ' pop-ups that rent that type of gas-station or hotel corner lots (http://www.drivethrucoffeekiosk.com/). This gent opened this walk-up with a partner, held it for a couple of years until they were established, and then bought or leased a building nearby for their full service restaurant (also in the pix).  They also have a food truck.

At least a monthly (or weekly?) rent would cover your tax expenses until something else comes up.  

Other seasonal pop-ups (pumpkin stands for Halloween, Xmas tree stands) would be ideas as well .  If you go that route, you might have to create the opportunity by finding and selling the renter.

Head scratcher indeed - good luck.

See if the storage lot business across the street would want to lease it from you for RV/vehicle storage?  Gates and gravel would be biggest expense - would ingress and egress be a problem though (i.e. would any entrance have to be through the McD's lot?

^^Following

Timely.  Thanks.

Chris, good call - monitoring this thread.

Other expenses: Real Estate/Contract Lawyer (best investment you will make, believe me, particularly if you are bringing partners in) and a competent CPA (ditto) familiar with Real Estate partnership complexities. Both the lawyer and CPA are key to crafting a tight and necessary Operating Agreement for the new LLC you will want to set up for your partners and yourself.

@John Real, thanks I will check them out.

Any others out there?  My current PM is having trouble finding tenants.

We have a ready-to-rent SFH in Saddle Rock Ridge area of Aurora (Near Southlands Mall). Looking for suggestions for a property manager; tenant placement services required and must definitely be net-automated. Suggested companies, and why?

Interested too.  Better to buy purpose-built or subdivide an older home and rent room-by-room?