1031 Exchange for Medical Suite
Hi,
My husband and I are planning on turning the proceeds from the sale of our vacation rental into a commercial real estate deal. Due to the nature of the 1031 exchange time is of the essence. We identified 2 properties and one of them was already sold to someone else so we are left with this one but want to make sure that the numbers make sense and we are not missing anything. Thanks so much in advance.
Asking price: $1,035,000
Offered: $995,000
Space: 3,920 sq ft $18.53 rent per sq ft = $72,672
CAP rate: 7.3%
Lease Type: NNN in Condo building
Existing tenant: Dermatologist with other 3 locations in the same city since 2008. Lease terms at this location 3/1/23-2/29/28 plus One 5 year option to renew
Finance:
Down: $584,000
Balance :$416,000
Upgrades: $50,000
Total: $466,000
Monthly Payment: $3,339
Monthly Income: $6,056
Monthly Profit: $2,717
Interest Rate Average: 6%
Amortization Average: 20 years