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Updated about 10 years ago on . Most recent reply
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Master lease.
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