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Updated almost 5 years ago,
Possibly buying a mixed use property
I am considering making an offer on a mixed use property. It has 2 apartments renting for $450 a month each and 1 commercial tenant renting for $2400 a month. The commercial tenant is a chiropractor. If they leave then the property will lose $1200 a month assuming I take out a commercial loan for 80% Ltv. The lease ends June 1st and they have to notify by March 1st if they want to renew. Not sure what to do. If the chiropractor stays long term, it's a great investment. They leave, it's terrible. The location isn't great (not horrible either) and may be hard to find a new tenant.
Should I make a contingency of 100% occupancy? Closing would be in April. Can I speak to the chiropractor directly to learn of their situation and intentions? Because I want to know about their long term plans 3-5 years into the future.
Thank you.