Commercial/Industrial/Mixed Use Property

[Sean H.]

Hello BP,

My question is how do i evaluate a property that is zoned commercial/industrial that has 2 buildings on site (1 studio and 1 residential)?  

Property is in a small town but in a great location amongst other residential buildings.  One building used to be rented as a dance studio (1000 sqft) and the other building has 2 residential units (both 2bd/1bath).  Both are in need of extreme renovations, but as Brandon says every property has the right price.

I am used to evaluating residential buildings as a starting spot in relationship to the "1% rule", but with this commercial building it has me a little perplexed.  Being a small town, i don't think there will be a lot of appreciation over time and especially with COVID, i think getting commercial tenants into the studio will be a challenge.

Any suggestions/recommendations?  Things i should specifically be looking at or advise you can give?

I hope all you have an Awesome day! Thanks!!