Is it a buy at 180k

[Rick Edgeworth]

.66 acres in growing community. Busy hwy frontage. 4 commercial rental location on the site. Currently all rented out though 2 will soon be empty. 1 of them I will use for my wife's business and the other will need to be rented. Biggest issue is that 2 of the buildings have history of flooding. It's a drainage issue and when it "floods" it get a couple inches in some spots and quickly goes out. With that it has never had an issue staying rented. Equal raw land in area is selling for 75-100k just for the land. I'm thinking I keep them rented and one day possibly tear down the flood buildings and build up a new building. All rent for $900 per month and they cover all utilities. Taxes 3800 a year. Insurance 4500 and flood 6500 if I get it. Commercial is new to me!! They are asking 180k which I think thEy will take less....wondering how low should I offer, how to present with showing them why I think so low....PLEASE ADVISE!!!!

[Don Konipol]

Honestly, you need more detailed advice then you'll be able to obtain online. I would contact a member of CRE - Counselors of Real Estate, and pay him his hourly rate for his analysis. If you get a positive evaluation, you should hire an MAI appraiser, to render an opinion of the fair market value of the property. A licensed surveyor can probably give you an estimate of eliminating the flooding problem, or tell you if it is possible at all. Some possibilities MAY be redirecting water away from the structures, or jacking the structures up and building a base underneath, but most likely the property is in a flood zone and these would not be effective solutions. With previous flooding an issue you should hire a structural engineer to determine the structural integrity of the buildings. While spending $7500.00 on a property you may not buy may seem like a lot, the cost of buying a property like this "blind" could result in total loss of your investment and being on the hook for amount of the loan. Further, if you use any type of financing other than owner finance or daddy financing, the lender would require appraisal and appropriate survey and engineering inspections.