Need help assessing this property!

[James Jardine]

This is a commercial property with two shops downstairs and one residential apartment upstairs. The building is brick and mortar with European style tile roof. The building is from 1930 but has been relatively recently renovated and the main things look solid (foundation, windows, roof etc.). Will be self managing.

Building is 300m2 = 3230 sqft

The numbers:

Price 550000

10% down

3% closing costs

30 year mortgage 4%

Already rented for 3700 / month

Cash flow estimate:

3404 (3700 * 8% vacancy)

- 100 property tax

- 80 insurance

- 500 repairs & maintenance

- 100 cap ex

= 260 / month

The property is currently on the market for more, but this is the number I would be willing to pay and gives me positive cash flow.

Is there anything I am missing? I’m happy to provide more info if needed.

Thanks in advance!