Master lease.

[Kameron Patterson]

Hello BP,

I don't have the specifics of the deal yet so I am looking for general information and tips right now. 

I am looking to lease option a commercial property. The ground floor of the property is currently and has been leased for the past 8 years by a bar (my brothers bar as a matter of fact).  The building is located about 8 miles from a major army base. 

There is a two bedroom apartment above the bar that needs complete renovation. A similar apartment across the street rents for 700 a month. My brothers lease is 750 a month. The building is for sale for $45,000. 

A contractor looked at the unit and estimated $30k in rehab. The building appraises for $87k. 

I'm looking for ideas if I should pursue this investment. I know with a lease option I have the ability to walk away after the designated time. The tricky part is I'm overseas for 9 more months and this would also be my first deal. 

The seller has been trying to sell for a few years. I was thinking I could do some work on the upstairs unit then. When I am able to put the building in my name I could take out the equity to rehab the upstairs unit completely. 

Any thoughts or suggestions? 

Thanks,

Kameron