1st deal sweet or Not?

[Shelby Robinson]

So, recently I closed on a property in SC. Currently the building is vacant, at one point it was a functional beauty salon. This is my 1st deal EVER. My plan is to convert into a barber shop, should be a smooth transition. Property zoned for commerial use. My parents owned the salon across the street, i lived in VA. So definitely long distance. Barber actually pay for booth rent. In SC market barber's typically pay anywhere from 100-125 per WEEK. This property has space for at least 6 barbers possibly more! Remember still a newbie here so be nice when you critque my numbers.

So here's the numbers: seller finance

Offer price: 38,500

Down payment: 2300.00

Interest: 9%

Monthly PIT: 567.00

Cashflow: 1800 minus utilities.

BOOM!

Thanks Biggerpockets! future updates coming soon.

[Natalie Kolodij]

You're mixing rental with business. 

Barber's/ Stylists pay that amount for a space in an advertised, well known, functioning, stocked salon. 

Utilities are going to be a decent amount for a salon, water and electric use are fairly high in these businesses. 

How much will it cost to install 6 stations in the space? 

Will you be providing back bar items? 

Are you budgeting for advertising? 

Phone and Booking systems? 

It's not like a trailer park when they rent space and handle all bills- normally ina  salon setting the salon owner is providing things besides the actual space for that price.