Questions About This Industrial Property Purchase

[Diane Menke]

I am interested in learning the ins and outs of owning industrial property. 

I need help analyzing this deal. 

15,600 sf of space 

asking price $325K

needs $125K according to the agent (new roof, clean up, paint other) 

tax $8600

ideally the tenant will pay for % or all of build out, maintenance, taxes and insurance. 

looking around this area I do not see rents higher than $2-$3 per year for basic industrial. Also our clear span is only 10'-18' but we do have 1 loading doc and a few bays. 

When I run this through a property calculator, its not such a great deal (cash flow) until we get closer to $200K purchase price. Or am I missing something? 

Thanks!