Need advice on my first commercial deal (restaurant rental)

[Phil C.]

Hi everyone. I’ve been buying residential rental properties and are recently becoming interested in commercial rentals. I saw a Gourmet & subs place for sale and want to get some advice on what things to consider before making an offer. It’s located in a good area, off a pretty big street, close to a hospital and a school. 1500sqft, subs & salads, fully equipped with no hood. From what I can see on google map, it’s on the ground floor of a large building. Price is $35k and rent for $2000, which is a bit too good to be true to me (that’s not what my single family houses can rent for).

How should I calculate the Cap rate? What might be the catches? Any advice would be greatly appreciated!