Check out deal analysis

[Derek Bell]

23k warehouse on 3.9 acres in one of middle TN fastest growing cities. 1 mile from major interstate. 

Purchase price: $3,800,000.  Due Diligence: 90 days   Close: 30 days   Earnest money: 1%
Sale lease back that will take effect at closing. $26,800 a month for 6 months NNN.

I can easily grade, gravel, and fence off the rear 2 acres for outside storage that would easily bring in an extra 4k a month. Or, even better, add about 15k sf to the existing warehouse. The existing warehouse would rent for $14/sf nnn. 

Let's look at the worst case scenario. $14/sf nnn on 23k sf warehouse plus the added lay down yard = $362,000 NOI annually

Cost of the yard will only be around 100k. So, all in @ 3,900,000. 

$3,900,000 with 25% cash down, that I would provide without any other investors. Bank loan of $2,925,000 at 5.75% with 25 year am. 

Annual P&I would be $220,812. Annual NOI would be $362,000. Annual passive at $141,188

Thoughts?