Okay, I signed up for DG's Success Academy 19 days ago, and I might have a possible first deal. It's a commercial property, which I never thought would be my first deal. Here's the details...
Commercial Property in a Downtown Area. 1 Block from the court house. Found out that the area is a huge revitalization area. Plans to have it completed in the next 4 years.
Property is multi-use. Upstairs, 4300 sq ft of office space. 7 offices (350 sq ft each) with a huge foyer. 3 bathrooms total.
Downstairs, 2200 sq ft retail space currently being used as a pawn shop. Rent way below market at $1k per month. Month to month lease.
3300 sq ft retail space. Possible renter lined up, will become pool hall. Will pay $2k for first 6 mos. Once building is upgraded renter will renegotiate rent to reflect FMV rent.
According to local commercial RE agent (I called one), rent is $2.00 to $14.00 per sq ft.
Owner is 72 years, very sick and wants to unload property. First mortgage $220K at 15 year fixed 7.75% interest. Second, $70k and in foreclosure. Owner asking $525K. Apparently, in December 2008, the owner had the property appraised. It appraised for $1 Million.
What do you all think? Any suggestions or pit falls I should look for? I will assign this deal.
aka The Mad Real Estate Investor