First Deal, not sure if it's a good deal. Gun Shy!

[Andy Stroman]

Hello 

I am just getting into realestate in a professional sense. I was a small business owner for 15 before selling it. I acquired two commercial spaces that I previously occupied and am now holding onto them for rent. I want to purchase a 3rd building but not sure if I'm getting a good deal. Here is what it looks like, I'd appreciate any comments.

Purchase Price: 310k

mortgage amount with 20% down is ~250k.

I can rent it for about 2700/month

taxes are ~4k

My mortgage would be about $2k, all in. Insurance, maintenance, etc. I know this because I own the exact same property next door.

So, it's still $700 cash flow positive If I get it rented. There is no renter now. If I don't get it rented, I'd have not problem carrying the mortgage but it's still money out of my pocket. the area is very good and is growing like a weed. There is no doubt that prices will go up. At the same time, it's very expensive to build. Trying to build a new equivalent property would cost at least 500k today.

How do I analyze this? Is it a 'no deal' because there is no renter? If I get a renter before I commit, is it a good deal? I'm just not sure what I'm looking for here and what else I need to consider.