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.
Commercial Real Estate Investing
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 over 2 years ago on . Most recent reply

User Stats

211
Posts
262
Votes
William Walker
  • Investor
  • Wilmington, NC
262
Votes |
211
Posts

Analyze hair salon purchase

William Walker
  • Investor
  • Wilmington, NC
Posted

I'm close to purchasing a hair salon - this would be my first commercial investment. I'm familiar with residential and own a few SFH but this is new.

Purchase price 100k

Rent $1,200/month

It is one building with 3 units that do not connect. Each with its own meter and bathroom. There is a sort of HOA (I'm sure not the proper term) that is $100/month that covers outside maintenance and insurance. The unit is currently being run as a hair salon with chairs, mirrors, etc and would directly roll over to new tenant.
Liability insurance for 1 million is 200/year. 
My current wall is financing. I am cash heavy and can put 25% down no problem, I spent a long time today calling lenders and I’m having difficulty finding a commercial lender. I’d like to do 15 years with 20-25% down. 

What else do I need to be considering in the finances other than taxes?  Do the numbers look profitable. This is in Wilmington, NC in a busy area with a good amount of traffic. I confirmed rental rate with 2 separate hair stylists that confirm it’s an appropriate rate. 

Any advise appreciated. 

Loading replies...