Lease gas station or buy

[Kev Pito]

Current operator is leasing a gas station from third party. Operator wants to sell to me.
Willing to provide Environmental reports and such.

Location:
At intersection. Currently unbranded
building is 2400 sqft.
Town population: 2500
Daily cars passing through that street. 6000 (based on 2022 data)
No working pumps- will be rebranded by purchase. (BP will be the new brand- 10 year lease with BP)
Store was heavily dependent on game machine revenue which is 45% in state. That's the take home net. Owners license got revoked due to violation. These machines can come back but currently not possible under current operator. He was netting 30,000 monthly with these running 24x7.
My goal is to assess the value of business without game machine license and with gas.

Scenario 1:
Terms if I assume his lease and pay him off at 250,000.
Rent 8200 (somewhat negotiable)
Utility 1500
Payroll 6000
Insurance/internet 350

Current Inside Sales: 45000
Current lottery commission: $3000
Gas when pumps were working: 20,000 gallons at 30c.

Based on these numbers, I am guessing he is putting money into this business without working pumps and no game machines. He says he makes $8000 dollars every month- I am thinking he is including his own payroll.
If he was passive, he would have to put money to keep the lights on?

................
I am planning to be passive with another partner who will also be passive. Thinking of putting full time manager to run the show. We will alternate who goes to oversee the store every other week.

Improvements we can make:
Store is in bad shape. Clean up, paint, make it look nice, organize etc.
put a salaried manager.
Empty shelves. (Stock more inventory)
Pumps. (Get rebranded and get more gallons or car traffic)
Game machine. (Apply for license and get em back)

Scenario 2:
Own real estate and takeover business. Maybe consider subleasing the gas station.

Can I get SBA loan 7a or 504 loan?   

Scenario 3:
Run, no money to be made.

I am open to suggestions for each scenario.
For someone that has worked in convenience industry- what are things to consider or do? is this feasible store or loss leader?

[Caroline Gerardo]

Need costs: for rehab (roof plumbing electrical...), security cameras, track remote employees (they will steal the cash), cost to install pumps, license fees, hard equipment needed- registers, apps to run the register information, accounting, legal, cases for merchandise, shelves, door hardware, heater or HVAC depending on location...

This is a tiny community there won't be a local plumber and electrician... add some cost for time to contact your team and travel will make any repairs more expensive. People sometimes drive off with the nozzle to the pump still in their vehicle and rip it down thus flowing spewing gas. There are contemporary fillers that detach in this case. The pumps have a great deal of electronics- you need enough power for this. 

Gas stations leak. The ground below is likely contaminated. The cost to clean up can be in the millions. Do not trust a report from the seller.

You can't get a SBA loan without experience. Have you owned and operated one? ANY lender is going to want core soil testing which is expensive- where is this? State AND Federal laws to know about the testing.

SBA won't loan on the gambling income, or anything passive- your bottom needs to be in the gas station chair.

SBA loan now takes LONG processing time unless you go direct. I did 294 SBA PPP loans with an officer in SBA during covid, (without commission added) it's not something I normally do but helped two people and they kept sending more. 

Owner got his license revoked 'wowser. What will he cheat on? I would look up why ~ it gives insight to his words.