Investor · St. Paul, MN · Member since 2014 · 109 posts · 37 votes
Hello Bigger Pockets community.
Background:
I'm in my infant stages of being a landlord - 2 properties, 3 tenants. It seems like I might have hit a jackpot find and need assistance looking through the numbers. I was out looking for property to rent and found an amazing condo above a business office. Their asking $800-900 for a waterfront view, 1 bed, 2 bath, 1000 sq. feet. Upon discussion, they let me know their looking to sell the entire unit. 2000 sq. feet of business space (currently occupied), 1000 sq. feet condo above the business water facing and another 1000 sq. feet condo above business alley facing
HISTORIC building, so I do not know what additional costs would be associated.
Income: $4,200-5000 (which doesn't seem bad for a $500,000 price)
Would you do it? I don't know if there is enough information here or not. But looking at the numbers alone, it is a downtown location that seems prime. What would you do? What would you ask?
Realtor · Gallatin, TN · Member since 2009 · 292 posts · 164 votes
11y
With the information given ... No
Numbers seem to be inflated. $800-900 for the "Waterfront" Condo side, that means the other "Alley" side would have to rent for $1200 - 1700 to reach your goal of $2000 - $2500
Something just doesn't seem to add up. Obviously do your DD, but I likely wouldn't pursue to hard. Unless you're ready for the commercial market, I'd stay far, far away. It could be a nice entry point in to commercial with a Mixed Use Building, but I'd still be incredibly erie :)
Investor · Titusville, PA · Member since 2015 · 298 posts · 150 votes
11y
@Steve M. it is my understanding that the 800-900 was the asking price. 800k-900k. Am I wrong? If I am, I completely agree with you. Unless the other condo is larger.
Investor · St. Paul, MN · Member since 2014 · 109 posts · 37 votes
11y
The asking price is roughly 500k.
I'm getting a personal deal on the waterfront condo for $800-900/monthly rent because I'm a family friend.
The waterfront condo will rent for $1400 and the rear should do $1100 minimum. $2500 up top and roughly $2000-2500 on the bottom. Sorry for the confusion.