Need Help Evaluating Commercial Deal

[Terry Owens]

In my search for a multi-family investment, I came across a commercial property (office space) that I want to analyze. Since I've been focused on MF, I haven't been sponging up knowledge about commercial RE, so I need some help please. At first glance the NOI is more than 10% of the asking price 90,000/800,000. But that only includes taxes, insurance, waste, parking lights and water/sewer. What other cap ex should I include and how much? Also, I would probably finance the due diligence...not sure what all I need to do for commercial office space or where to find out.

Also, I will probably need to raise hard money for this.  When I consider, say, 8% returns, how is that calculated?  Compounded annually? Also, what is typical equity spread with investors?

This could possibly be my first deal and expert advice would be appreciated.

Thanks, Terry