I am looking at investing in commercial properties especially offices. I came across one deal; price 150000 with 12881 net rental income per year. Does this look like a good positive cashflow deal? What is the break down of the closing cost in such a deal? Thank you very much in advance for answers from anyone. Cheers
Jason
Hi Jason,
A couple of things to take into account when investing in commercial property is that the leverage available isn’t as high and the interest rates on loans are higher. Vacancy risk is also higher.
My personal view on what you have said about the opportunity you are looking at, given the info availoable, is that you will be using up a lot of equity for a pretty small cash flow return.
Regards
Alistair Perrywell
i had the complete opposite Jason
My tenant have been in the office now for 12 years
they spent 150K when they moved in, do the building up…and it looks like business is good and they probably be there another 12 years…..
and cashflow….i paid 360K for office….they pay $80k/yr plus all outgoings…and keep the building looking clean….
what more do i need?
maybe another one like that………
You must be logged in to reply to this topic. If you don't have an account, you can register here.
