Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 5 years ago on . Most recent reply

User Stats

20
Posts
5
Votes
Tyler Smith
5
Votes |
20
Posts

2 unit commercial property. Should I close?

Tyler Smith
Posted

I am set to close on a 2 unit, new construction commercial property in central Texas on May 1. Option period has ended.

The numbers worked, but then the virus hit...Will we back to work soon? Will I be able to find tenants?

The down payment will be $116,000 if I close. My worry is if I do the deal and don't get the units leased, I will be responsible for a $2960 monthly mortgage + taxes, insurance, CAD etc. Should I move forward with the deal or terminate the contract and lose my $15k earnest money? 

Numbers: 
PP: $579,000
RENT: $7500 ($3750 per unit)
Op EX: $3190
  tax and insurance: $1200
  CAD: $600
  property mgmt: $640
  vacancy: $750
NOI: $7500-$3190 = $4310
Cash Flow: $4310 NOI - $2960 mortgage = $1350 cash flow
Cash on Cash return: 14.08%

Loading replies...