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Updated about 3 years ago, 11/02/2021
First Timer...too much too quick?
Good morning BF.
Been looking to get in the game for a little while now and ran across a potential investment by pure luck.
Was originally looking at single family residential to start out with rentals.
Commercial deal came in to our laps:
$310,000 purchase price
4 retail store fronts(3 rented to a cafe, 1 to a boutique)
2 apartments rented out upstairs
1 vacant apartment upstairs(biggest of the 3 residentials). Family lived in for years and moved away.
$40k rental income next year
Slighty over $45k 2023 with rent increases in place(were cut back for covid purposes)
NOI is $28k before mortgage
Numbers all seem legit and a good investment.
My question to the seasoned vets is: Would I be going too quick too fast with this many units to manage? The way I see it, it would take roughly 4 single family homes in my area to get back the same return in the same time frame. Cash flow would be slightly more with 4 single families, but we're not looking to get rich quick here and the cash flow on the commercial building would suffice, plus appreciation, paying off debt, and doing small rehab to the vacant property along with renting it out would increase value with additional rent.
I run a business with 40 employees and understand the business side of things pretty well. But I don't know if I should leap into this many tenants without "landlord" experience at all.
I appreciate any feedback you can give!!
Dustin