Newbie Investor and Seeking help on this possible deal

[Michael Hoss]

Hi everyone,

Thank you in advance to all the help and advice you provide on this great forum.

I am looking at a Shopping Center in Dallas that is for sale, possibly going under contract today but before I do that I need some input and analysis of how to go about this without major mistakes.

1- Older Shopping Center Built in 1969 in Downtown rough area

2- % 100 leased with leasing contracts extending for 2 to 4 years - Long term Tenants

3- Exterior painted in 2012

4- Roof repaired in 2011

5- New Signs in 2012

6- Resurfaced lot in 2012

7- 13,314 SF with 2 legals - 7 stores - I have a copy of all leases

a- Liquor store since 1984

b-Grocery store since 1999

c-beauty shop since 2011

d- barber shop since 1969

8- Utilities are seperate metered and paid by tenants, tenants do own repairs

9- Seller pays Taxes: $12000/Year, Insurance: $7000/Year, Exterior and Sign Electric $1800/Year, Parking lot daily cleanup $3600/year, management fee is 12000 / Year ( I can eliminate that and do it myself?), Lawn care: $2400

10- Original Asking price: $850K

11- Accepted price:$650K if all cash offer and close in a month, seller husband died(verified) and she just wants out

12- Price per Sf at $850K is $63.84, at $650K is $48.20

13- 2012 Gross Income: $106,080

14 Operating Expenses: $20,840, $12,000 of that is management fee

15- NOI: $85,240

16- Pre tax cash flow: $81,840

17- Cap rate at asking price of $850k is %10 higher if i get it at $650K

18- Cash to invest $500K, I own a paid off home worth $175K, talked to a lender who can get cash out of %80 loan to Value at %3.5 - 15 year loan

so I can get $130K from House and $20k borrow from family to come up with the $150k short to pay the $650K

19- 2013 Current rent collected increased from $8500 to $10090

Breakdown: Rent collected: $10,090

Monthly Expenses with current management company: $1730

Gross: $8360/Month = $100,320/Year

Tax: $12000

Insurance: $7000

NOI: $81,300 with management company - add $12,000 if no management company used

Please let me know how to proceed, good deal or stay away? How to get a proper inspection on a commercial shopping center with 7 tenants, who to hire, an attorney for the contract?

I am in TX

thank you