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Updated almost 7 years ago,
Buy and Hold Commercial
I used the BP buy and hold calculator to analyst a commercial property and the numbers didn't make sense. Not sense to purchase and lease out. Can you use this tool for commercial properties or am I missing something. They are asking $169,000 for a standalone 911 sq ft building. The leasing price is $14.00 sq ft. I adjusted the offering price to $80,000 and the cash flow is $105.14, ROI is 7.42% and the cap rate is 7.69%. I have never purchased commercial before only residential and this would be a terrible deal. Please advise.