If the furnace is 25 years old and its life expectancy is 20, budget for a new furnace during your ownership.

And it’s one of the easiest ways to protect your budget and avoid the stress of emergency call-outs from tenants or building owners. 

As I began marketing the 3,100 SF restaurant space, it became clear that hospitality financing remains tight and operators are pushing far more of the cost burden onto landlords than a standard white box delivery.My original pro-forma budgeted $200,000 ($150,000 for white box plus $50,000 towards tenant enhancements) with an expected rent of $4,800/month.

If you find yourself trying to squeeze/limit the renovation budget in order to get the purchase price to make sense I would be very cautious.

If I were starting over, I would probably want double my renovation budget available, just to be safe. 

If you don't, budget for it anyways. 2.

That being said, I reccommend using a quick hard money loan to finance the reno budget and then refi immediately to stabilize the debt with market rents.

Anything you would approach differently given my goals and budget?

CategoryAmountPurchase Price$550,000Rehab Budget$185,000Closing Costs$17,000Total Project Cost$752,000Effective Gross Income$168,120Operating Expenses($60,000)NOI$108,120Debt Service($48,852)Annual Cash Flow$59,268Monthly Cash Flow$4,939Cap Rate (on cost)14.4%DSCR2.21Cash-on-Cash Return31.8% Hey @Chad Emerson, welcome to the BP Forum!

I track my costs and try keep to my budget as much as possible.