Advice Needed For My First Possible Deal
Thanks in advance guys...
This building is being sold for 575000. The neighborhood is great because I live in it and I know that. 
Its 4 blocks away from me.
The numbers are like this.
There are two apartments. One rents for 650. Three bedrooms. The other rents for 950. Bigger and also has 3 bedrooms. Both tenants have been in the apartments 5 years and I personally spoke to them when I looked at the property and they loved living there and don't plan on moving. The first floor has a bakery thats been in this neighborhood for 20 years at least. Everyone knows about it. They claim to gross 350k and net 115k after ALL business expenses. So, I figure this:
Business income: Appx 115k
Rental Income: 19.5k
Taxes Yr. APPX: 8500 (2003)
Just in case money: 10k per year
I figure that the net for this whole deal for me on a yearly basis will be about 70k more or less. In addition, the building needs ALOT of work. This neighborhood is BOOMING with lots to offer in the coming years and my idea is to keep it, upgrade practically everything slowly but surely and then maybe sell it down the road.
I have one bad thing going and that is I know nothing about bakeries. But, the owners assistant wants to stay after I buy the place and work for me. He has been in that bakery 15years and is relatively young. Loves the place.
So, would you go for it? Or no? I have secured financing for the building so that is not an issue. I am thinking about getting it appraised. I might end up offering 515k if I get good feedback from my friends at the TCI forum.
Thanks again.
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