Medical Building
I am looking at a medical building with 2 units. Well actually the entire building is 4 units but this is just 1 side connected by a small common area. The building was built in 1963. The outside is in nice condition, the inside is good but dated. The upper tenant is chiropractor with a lease for 4 more years. The lower is a telemarketing firm under lease for 4 more years. The other side that is not for sale is a dentist and doctor so its fully medical but mostly. Its a triple net lease with both tenants, with 3% rent increases anually. The asking price is $225,000. I would have to borrow the entire amount. Rent is $1500 upper and $950 lower. I was thinking that with just being responsible for the P&I would make the cash flow pretty good with 100% financing. Am I missing something. I have no commercial experience. Thanks.
it going to be tough to get 100% financing.
Is it true NNN, or does the landlord have some residual cost
Thanks. Well I should clarify. My credit union will do 80% of appraised value, and I would be borrowing against my primary residence for the other 20%.
According to the leases, the only the landlord is responsible for is parking lot repaving and painting. Everything else I can think of is listed in the lease as 50-50 between the tenants.
Five things people want in a storage unit:
Secure- both for them and for their property
Dry- not just no leaks, but low humidity
Clean- outside and in
Pest free- no risk of ant, cockroach, mouse infestations
And most important- cheap!
Chris