Possible first deal, mixed used, lofts and retail space...

[Chad McIver]

Property is a foreclosure in a historic city, with plenty of traffic. Asking price is 400,000. 7000 sq. feet.

Building is 3 levels.

First level is retail space that is currently rented at $2000, but lease is up in a few months.

2nd & 3rd level are lofts, that consist of 3 units. Current rents are $1000, $900, and $850.

Building has been completely updated within the past 5 years.

My plan is to move in owner occupied, live in one of the lofts and hold and find new renters for the retail space, which is rented below market rents for the sq. footage, approx 3000.

Gross Operating Inc $50400.00
Total Expenses $12234.00
Net Income $38166.00
Assessed Value Land $48750.00
AV Improvements $518280.00
AV Total $566850.00

Looking for financing now, and hoping to make make a deal on this.

Let me know what you think

[Account Closed]

Whats included in the expenses? They seem light. I realize that this a mixed use building, but I would expect some more expenses. Is vacancy factored in anywhere? Are any reserves for future capital expenditures included here?

Repairs and maintenance can be expected regardless of how long ago renovations were made. Toilets can get plugged. Blinds can be damaged. Tenants may leave trash by the dumpster. Keys may be lost. Many things can and do happen.