Office/warehouse building - Investment Property

[Roger Brandel]

I'm working on an office/warehouse investment property that I will lease to 5 tenants - the building is currently 100% leased. Here are the details:

$425,000 Price

$106,250 Down payment (25% cash + 75% home equity loan)

$320,000 Mortgage (4.5% @ 20 year)

$5,000 Estimated closing costs, fees, etc... per Real Estate broker

8,000 Sq Ft

$11 SF / yr

$15,000 / yr taxes

- Advertising, Grounds, Maintenance, Insurance, Utilities, Legal, 10% vacancy

....

$16,000 / yr Net Profit

______

On a scale of 1 to 10, what do you grade this deal?

Thanks!