Properties to do a syndicate on and be a sponsor forI have been looking at owning some businesses also but do not like where the minimum wage level is rising too.

If staying in the area and taxes aren't a consideration, renting it out may be a good option.  

Thinking of ways to pass this onto the seller I may be able to get them to do a consideration on these facts.

Your annual return on the $400,000 will be 3.99%.That's a very simplistic calculation that doesn't take into consideration expenses like maintenance/repair, management/leasing fees, insurance, and, oh yeah, property taxes.

Please take into consideration of neighborhood class/property tax/home insurance cost/vacancy rate, they can all affect your decision making process.  

@Will Bert Dont forget to take into consideration water for both buildings and the PLP electric meter into your costs.Also the rental numbers seem a bit low with a 3 bed commanding only $1300 a month.Idk the value of the vacant commercial unit so i cant help you there but where did you come up with the $4500 amount when the other commercial unit you have is getting 3k?

Hi Ben, As long as you are making your numbers work taking in consideration flood inssurance and also the valuation is lower than a non-flood zone one, I will be ok with that.

In a rising interest rate environment, you may be committing financial suicide. 

He rented it out for two years and probably made another $75K or so between rising values and mortgage pay down.

Another consideration is a cash-out refinance on the property to tap into some of that equity AND generate rental income.