Texas Office Space -- Deal or No Deal? - Posted by Mike

Real Estate Investing Office
1

Posted by Mike on July 19, 2006 at 18:14:20:

Don’t have a complete itemization yet; however, it is supposed to include power, trash, water. I will pursue the due diligence only if it seems to be a good deal on the surface.

I have good credit (750)but not lots of cash right now. Any idea on rates and terms that might be available. Will down payment less than 20% work with lenders? What about SBA?

Thanks,

Mike

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Texas Office Space – Deal or No Deal? - Posted by Mike

Posted by Mike on July 19, 2006 at 17:40:33:

I own 2 SFH rental units with good results. Opportunity to buy office space. Space is located in major road with good visibility. Below are specifics:

4000 sq. ft.
11 offices – all rented with annual leases
$3700 monthly rental income
$975 monthly expenses (tax, insurance, utilities)
9 years old and in visibly good condition
No previous experience in commerical
List price of $280,000

Several questions:
1.) does this look reasonable?
2.) suggestions on financing – type, source & terms. The recent SFH rental purchases has pretty much taken out my cash/equity reserves.
3.) Other key ideas to consider?

Thoughts, Ideas, or Suggestions.

Mike

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Re: Texas Office Space – Deal or No Deal? - Posted by Patrick S. Lawson

Posted by Patrick S. Lawson on July 19, 2006 at 18:00:57:

Looks like it could be a good deal.

Typically lenders want you to have atleast 20% of the purchase price. Even if you don’t have to put that much down it goes a long way when it comes to getting approved.

Please break down the utilities in more detail.