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Updated about 3 years ago, 10/25/2021

User Stats

21
Posts
6
Votes
Dustin Corbett
  • New to Real Estate
6
Votes |
21
Posts

First Investment...Good deal or no?

Dustin Corbett
  • New to Real Estate
Posted

Good morning Bigger Pockets community.

My name is Dustin and for about 6 months or so we have been researching and educating ourselves on the real estate investment game. We have a relatively strong income coming in from our full time gig and it's time to let our money make more money.

We were initially looking at single family residentials in our area, and lost 2 offers we put in, because the money wasn't right otherwise, which we are totally OK with. NO emotions here, strictly math.

By pure happenstance, we ran into a different property that seems to make sense financially, but is a little more scary then we thought we were ready for.

Local to us, a commercial/residential building is for sale. 4 store fronts street level, 2 apartments upstairs, and 1 large unit upstairs that needs a little rehab to be leased out, as it was occupied on and off by the owners kids for many years.

The 4 retail units, and the 2 residentials are all spoken for with good leasing history. Current tenants are all 4  years at least, with 1 retail unit starting a 2 year lease this past June.

Asking price is $310,000 and the rental income, which has stepped increases in rents currently sits at $36k for 2021, and $40k for 2022.


My only fear is that to recoup my initial down payment would be quick and a good investment. However the cost to rehab the vacant portion of the upstairs, would require a few dollars in order to get the extra rent.


To all the pros out there, does the income coming in currently with only the 6 units enough to cover the cost of the property and make this a good deal without the 7th unit? If so, then I can treat the vacant unit like it's own investment and work on rehab vs rent in the future....not necessarily right away. I hope this makes sense.


Everything leads me to believe this actually makes sense. But the commercial side of things is a different story, and not what we were originally thinking. That being said, I won't pass on something just because i'm not a seasoned vet in the area. I think I need to just jump in and do it. Figure it out as we go.

Thanks everyone!!