What are your thoughts on this deal?

[Stephanie Ferrante]

Hi All!  

I am a SFR fix & flip investor and this will be my first look at a commercial deal so I wanted to hear your thoughts.

This is a ugly office building in the downtown area of my small town.  It was 2 houses, combined, then renovated into a office building.  It has 9 small offices, 2 half baths, 2 kitchenettes, parking, storage, etc. plus several entrances.  

I think best use would be to do a light reno ($15-20k), furnish the offices including some equipment, and rent as individual offices.  

Quick Numbers:

Purchase Price  $110,000

Rehab $20,000

Furnishings/Equipment $16,000

TOTAL COST  $146,000

Gross Monthly Rent $3,600

I think using the 50% rule would be quite accurate here, giving me an annual NOI $21,600 CAP 15% ...I would think the resale on this would be $250,000 ..

Now I just need some private money to fund it :)  

Eager to hear your thoughts!  Thanks in advance!