Store front deal FSBO!!!

[Alan Bostick]

Repost:

I have found a store front property that is FSBO in an historic district of town in the Greater Akron Ohio areas, asking 550k. Seller has 100% equity and is mom and pop owner. 8/9 units occupied. The basic numbers seller has provided without letter of intent is 95k annual rents, 25k annual expenses. From my knowledge the area Cap rates are between 12-15%. If I did the math right I believe this property is selling at 12 cap. Given if these numbers are accurate would this be a worthwhile investment? What other details should I be looking for in assessing this property? Should I decide to move forward should I use utilize a commercial agent when it is FSBO?

[Jonathan Greene]

Mom and pop owners are hard to underwrite, especially if they are still tracking expenses and rents on a cardboard box top (it happens). You have to underwrite the deal as if you would not be managing it because they don't get a bonus on their price just because they manage it now. From what you put in, it sounds like a viable deal in a great location, but I would take note that your traditional main street commercial renters are fading as more business go virtual. What businesses are in there now? Is it more lawyer office stuff or retail?