Owner Occupied Light Industrial Question

[Scott Kinsel]

Good afternoon BP community.  I am new to this platform, so I hope this is the right place for this question.  I own a business that distributes out of 16 warehouses in the central United States.  The warehouses we operate out of in the larger markets are 10-15k sq ft and in the smaller markets 2-4K.  I hate to admit it, but I don’t own any of these properties. I’ve used all available capital for 12 years to fund the growth and expansion of my business. 

Well now I'm in a position to start buying. I will buy through a separate entity - presumably a single member LLC - and my business will lease the space. We have several leases that are about to terminate in Houston, Lubbock, and Little Rock. The rest are mid 2021 and later.

I will finance these purchases. What loan terms can I get on an owner occupied commercial building? Trying to figure out how to analyze the ROI and cash flow.

Question, is this a good plan? Should I buy land and build? Find something and rehab?  

THANKS in advance for providing any guidance you may have.  

Scott 

[Ronald Rohde]

Congrats! Thats an exciting move, be sure to set your rent at arms length with flexibility in case you want to exit either business or building.