All Forum Posts by: Dominic Lucarelli

The building is located within walking distance of the local projects. There's a small convenience store, pizza shop, and take-out food shop nearby. So there's lots of foot traffic. I'm thinking of adding either a cell phone shop or vape shop into the retail space (I have friends who run those type of businesses, so I'd like to get them renting in my bldg). I'm not expecting any appreciation from this building. This will be 100% for cash flow.

You travel 50 miles to get to work? Sounds like the perfect opportunity to find a duplex/triplex closer to work that you can live in. Then your renters pay your rent/mortgage AND you can pay off your bad credit card debt. So now you've got your feet in the real estate game, stable income, closer to your day job, and much less risk on your hands. Slow and steady wins the race.

It's a Postal Contacted Unit, which means you're authorized to sell USPS products (stamps, stamped letters, parcel postage, etc.) and take a portion of the sales. I've done more research and since I'm a Postal employee I'm forbidden to own the contract. But I'm thinking I can partner with the current owner, allow him to own the contract (and receive 49% of profits) and run the remainder of the business myself. I cut my top end earnings but I can't earn them without him. Such a shame...

The gentleman is an older man working a full time job and has 6 other properties he tends to as well. He's looking to lighten his load and ease into retirement, write a book, travel, etc. So he's "passing the torch" so to speak. I'm a mailman as my day job and I've been listening to business books on tape for quite awhile. I've always had the entrepreneur bug and this seems too good to be true that it fulfills two of my dreams (owning my own business and property) in the same deal. I know I've still got much homework to do, but it seems like a slam dunk, right?

I've been reading a TON and asking lots of questions from people who've been in home repair circles. One gentleman heard my story about beginning in property investing and passed my name to a potential deal-of-a-lifetime, but I still feel so GREEN that I'm doubting myself. 

So here's the nuts and bolts:

A commercial property with 3 small store fronts on the main level, and apartments above.

Left Storefront: $350 

Middle Storefront: currently used as owner storage

Right Storefront: Currently occupied as a Post Office Contract unit that pays a percentage of sales. Averages between $1500 and $2000 profit

2 bed apartment upstairs: $525

Studio apartment upstairs: $300

Water, Sewage, and trash are paid by the owner.

Total asking price (off market) is $100,000

Now, without the Post Office, this isn't a very attractive deal. It falls under the 2% Rule, BUT adding in the Post Office sales makes this a SWEET deal. Roughly 3% but I'd have to manage (or hire out mgmt of) the Postal business. And I'd still have a small storefront open to rent out or use as I see fit. 

Thoughts?

Looking at buying an old Post Office next to my parent's house as my very first investment. Listed as a commercial property with a small store front and duplex in the rear. Currently both units are rented, but the store front is vacant. List Price is $59,000 and I know it's going to need a new roof very soon (est. $6000) and concrete work outside (est $2000). Rents in the area are between $500 and $600/unit. It's a D building in a D neighborhood, but the entry price seems right on. Haven't seen the inside yet, but I'm trying to evaluate if it's worth looking at since it's listed as commercial.

What kind of hurdles can I expect with this since it's listed as Commercial property? Am I missing something obvious?