Gotta net out the value from the RE.Look to the old sales generated, but you also need to take into consideration what kind of operation will replace the old business, a significant change in menu won't be the same and consider the blue sky falling since it's been closed.If that owner has medical issues, seller financing may help him save on his estate preservation, if he gets cash it could be required to pay medical expenses and lose what he gets, financing it will usually take him to a discounted market value of his note, savings can be significant and save in keeping other assets.

@Christopher Talbert,Are you looking for an operations system to manage your tenants and properties?

FHA is government funded and operates under a different set of criteria.

Might see RE Operator, if it's a job it's hardly investing.

This is a good deal, but your evaluation is wrong.NOI is defined as Gross Rents - Operating Expenses.

I know more than one legal firm that seems to like commercially zoned houses to operate out of.Now I have a nonconfrontational, while honest question and could use an equally honest answer.

To each their own right.I still have all of my old comics and baseball cards as well.

Commercial property operating expenses average between 40%-50% of AGI (agusted gross income) therefore the listed expenses are incomplete (they show only 31%) and thus the NOI is incorrect (too high) Furthermore, the Cap rate for that type of building in that area seems a bit expensive to me (I could be wrong about that).

This election is typically recommended for operating businesses that are profitable.

You get to reduce the income you pay tax on by claiming expenses you used to operate your business.