First Commercial Property!

[Christian Sidaros]

Hi everyone, 

Looking for some advice and opinions on a potential deal I have cooking. I have been strictly a residential house flipper for the last couple years; therefore, commercial is a whole new world for me so any advice or opinions would be greatly appreciated. This is a 4,700 sqft single story commercial building right off main street in downtown of a very small town (less than 5,000 people in the town, around 30k in the county). Despite it being a small town I drove around this town quite a bit and for a tiny town it has a lot of activity. It seems that this small town services the greater region and most people that live in this county come to this town for their shopping needs. The building was built in 1900 (in the historical district) and renovated in 1970. It has street parking only and one roll up garage door. The building suffered hurricane damage and has structural issues and ceiling issues. New roof in 2021 and one bathroom. Needs a total gut job, new HVAC, upgraded plumbing and electrical, and an additional bathroom. The building falls in the social district of the town meaning this is a small area of the town where one can walk around with an open alcohol container as this is illegal elsewhere. I'm mentioning this just because it gives more options for tenants (bars, breweries, etc). Would love some advice on the pros and cons of this deal.

Purchase Price: $40,000

Rehab estimate: $100,000

Estimated rent: $8-$10 SF/YR

Thank you!