Need Advice Office Building Purchase
I need some advice. I have come across an office building that has a law firm who has just renewed their lease for 2 years at 1700/month in rent. I am new to investing in commercial property and so I want to make sure that i am asking all of the right questions. Owner is asking 160K. I have run some preliminary numbers on the proforminator tool on this website...and the numbers start to work out around 145K. If you were in my shoes what other questions would you ask?
I am a newbie so I any help will be much appreciated. 
I would want to know the area. Are there a lot of spaces for rent in the area? How much are other buildings renting for? What expenses are the tenants paying? Taxes, insurance, utilities, etc? Is there a rent increase in the lease for year two? Are they planning on leaving when the lease is over? Condition of the property. These are but a few questions to ask. There are 100's to ask.
Good LUCK and Thank You
Hope this helps some
Ted Jr
Thanks Ted. When should I ask for audited financial statements regardng the property?
"Audited" financial statements will not be possible. But get a copy of the books to go through yourself as soon as you can.
The lack of financial information is the most frustrating area especially in small commerical deals. Good news is that these days the books are most often kept digitally.
I like to go through them my self.
One time when I asked for the books, the seller pulled out a pocket check book and gave all the stubs. I loaded the past year into my system and based my next offer on that. ( You know that offer that you make after he has accepted your
offer based on HIS financial representations.)
Good luck.
Gregg
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