Questions to ask when looking at a commercial building

[Cory E.]

A 3 unit commercial office building just came up on my MLS and I am interested in looking at it with my partners. I was told by my aunt who works for one of the doctors that the local hospital pays for all the leases, I'm not sure if that's true but I will find out. Price: $390k right on one of the main roads in a good area Property taxes: 13k/year This is the info I planned on getting: Types/terms of the leases How much each unit leases for Insurance cost Heating costs and whether the tenant pays for it. Last time any major repairs have been done(roof,hvac) The building looks to be in excellent condition. I've never looked at a commercial property before so I wanna have a good idea what I need to know before I setup an appointment, thanks.

[Jean Bolger]

I'd suggest a quick read of Frank Gallinelli's "Insider Secrets to Financing Your Real Estate Investments".

It's not just about financing, it has great stuff on due diligence, negotiating, contracts, etc. It deals more with multifamily, but also touches on commercial and it's well worth the time.

you can get it downloadable for Kindle on Amazon

good luck!