What do you all think about commercial investing?

[Brooke Booth]

I'm considering purchasing a convenience store/gas station that doesn't have any land/structures included (just the inventory and leases). It's $40k plus inventory and the books show a net profit of $58k/year. At this point it runs smoothly with the current owner only putting in 5-10 hours a week so I can still focus on real estate investing, and use the profit for downs on SFR or multi-family housing.

What are your thoughts on this?

[Joseph Firmin]

Could you get the same return for less time with the same money elsewhere for less risk? 5-10 hours a week could easily turn into more if an employee quits, an issue pops up and now you're behind the counter. With the funds you are going to purchase the convenience store, especially given there is no physical asset attached (besides the inventory), your risk here could be high. Plan for the worst - what would you do with the inventory? Sell at 1/2 off? I'm not trying to dissuade you, just look for the best way to negotiate your risk down for the value of your investment.