Purchasing a very old but maintained building and business

[Brent B.]

Hello,

I have been a ghost in this community for some time. I will do my best to be brief in an effort to get the most advice.

I make $50,000 a year. I have less than $5,000 savings

Ive grown up poor and have no ill feelings about it. I have learned and earned my way and im proud of what I do have and what I have accomplished.

My goal of course is to provide financial stability for my childrens future. I feel I have done well for myself, but am always looking for a better opportunity.

I do have one rental property that i originally purchased to live in. So its financed for 30 years and is currently renting for $825 and the payments are $700 (unit has been rented for 6+ years)(not a great investment, but i could cash out around $10,000 if i sold it at the low side right now... i know... not alot but im just happy im not upside down!... i currently rent where I live and I love where i live.

I have worked in the moving and storage industry for a local moving and storage company for the last six years. I manage ALL aspects of the business.

The owner has decided that he wants to sell and retire.

This consist of two warehouses converted to climate control storage. And two rows of units for non climate storage. Potential rents show $110,000 per year. Average occupancy shows 80% over the last three years(the owner has family undocumented blocking around 6 10x20s.. i am very confident that i can keep this 90+% occupancy

These warehouses were built in the late 60's, but were converted to climate control storage around 2005( with drop ceilings)

I would like to focus the discussion on the storage business side/ property purchase. And ignore for a moment the fact that it comes with a moving company too. The reason i want to ignore the moving company is because i can run this moving company out of any warehouse/office.

The owner is the type that thinks everything he owns is worth gold...

He asked for $750,000 two years ago and hasnt gotten even an interest. He has finally offered it to me with owner financing at 5.5% 15 years at $600,000

Remember i have great (740)credit but limited funds

I countered with $520,000 with $20,000 down

He countered with $580,000 with $20,000 down

The owner financing is a pretty big deal for me.. without it i wouldnt even be able to think about a deal this big with my income of $50,000 a year without outside investors that seem to be a rare find :)

The time invested in managing the storage is pretty small and easy for me.

I guess all of this background story is to ask you guys will I be making a smart choice here. I am faced with the reality that im unlikely to be able to save enough to start investing before retirement .. i will be 30 years old this month

My concerns are with the old building. I have no experience in purchasing or maintaining old buildings like this nor can i say if it will be standing strong for another 30 years (im here everyday and all seems well, but im scared of what could go wrong with this old of a building)

I believe the business will continue to rock on solid. I believe just the storage part will pay for the buildings and still net me a profit of 15-30,000 a year depending on maintenance

I told you guys in the beginning that I would keep this short, but I guess i lied :)

Please help open my eyes to something ive not thought about. Please ask questions.. im an open book. I want to make sure im making a sound choice buying this old of a building

The moving side of this currently pulls in roughly $550,000 and nets the owner around $80,000 a year (and pays me my $50,000 a year)