Strip mall evaluation in rural market

[Kirk Roberts]

Looking at a 10 unit commercial strip building (1200 sq ft each unit with own bathroom in ea.) rural New England town good traffic counts good but population and demographics are ok. 6 of 10 units tenants long term and remaining 4 have been in at least 3 years.

Asking 1,000,000 on 8 acres with some pretty loose zoning. So thinking of value add opportunities as well. Storage saturated I have evaluated. But possibly construction garages or larger dry storage...??

I'm not coming anywhere near a million on my evaluation. Was also trying to come up with a creative way to propose financing, lower down payment and still have a good cash flow with debt servicing the property. The building is 40 years old as well so some deferred maintenance exists. Nothing major upon initial walk through. Love getting different perspectives and ideas from our BP group!

Here are the Financials that was sent over, gross lease and still don't know lease terms yet.

2021 Leases:

6 units at $735/month

4 units at $700/month

Total:  $86,520/year 

2022 Leases

7 units at $735/month

3 units at $700/month

Total:  $87,360/year

Annual Expenses:

Electric -     $682.24

Plowing -   $4000.00

Insurance  $3384.00

Taxes -     $14847.00

Total expenses:  $22,913.64

Net Income:  $64,446.26