TripleNNN lease (church) possible redevelopment
Hey all,
I know a re-development/purpose of a building is a little out of my league right now but I was thinking about the overall deal and it seems like I am still net+ cashflow even at closing, until I get some more experience under my belt and maybe can partner with someone.
Details:
$220K 10,000sqft building currently rented tripleNNN for $26K/yr.
Here is the pitch: " At $21.45 PSF, this property represents a potential re-development opportunity. The underlying land is zoned RM-16 and the property is located in an area that would support low cost housing, affordable, independent living, assisted living, and/or daycare. It is believed that the site could be approved for up to 25 beds as an ALF."
My thought is I can get a loan on $180k 30yr for around $940/month ($11k/yr) and put the money aside to then eventually fund a down payment on development of an ALF building. Of course this is pending inspection to determine when things such as a new roof, hvac, anything else that would cause a spike in expenses.