my husband and i want to buy a commercial building with 6 rental apt do you think this is a wise choice?

Question

has a large store front. and 6 rental apt.price 200,000.00 .

Answer 1

I suppose that would depend on the location. Over here, 200k would not even buy you one apartment in the city. If you are located somewhere where a 6-unit building with a storefront can be bought for such money, you need to seriously research whether or not there would be willing renters. Check out surrounding buildings, see what's going on there.

Then again, real estate is the best investment because it can only appreciate. If you and your husband can afford this purchase and its upkeep, it will likely pay off in the end.

Answer 2

The way to get that answer is research it.

How much will you charge for apartments per month? How much vacany is there in the area?

What is the commercial market in your area like? Will you be able to lease the units?

Once you have some projections, it's a numbers game. Figure out your gross rental income (less vacancy) and then subtract expenses and debt service.

This will give you an idea of cash flow potential.

I am just scratching the surface on research but this should give you some ideas.

Good luck!

Answer 3

You maybe able to afford the building, but what does property taxes look like and how soon do you think the building will be ready for buyers? What will your money look like after you have bought the building? Does the building need work? What type of matianece will you guys provide? How much can be done by you guys and how much will require proffesionals? What will the cost be for all that on a yearly basis? Will you need to take out loans? There are so many things to look for before doing this. If everything looks good then take the chance!

Answer 4

Taking on any rental property is a risky adventure. Check with the previous owners to find out the profit margin on this building. Be sure to have the property thoroughly inspected by licensed plumbers and electricians to avoid any last minute surprises. If everything checks out and you and your husband have the time and finances to do this then go for it. Good Luck.

Answer 5

good..
at first you will suffer becoz financial problem..
but when you can go through all the obstacles, you can have a nice day ever..
building is an asset that will never depreciate..year by year the price will go up and high..
-You need to know the potential of your apartment, such as how about the market..did people in the area really need a house or a place to rent..or is there any people that would like to rent your apartment...
-at first its not easy to pay i gues usd1.2 million to buy the apartments..thats why i said you gonna through this..
-but when all covered (maybe 20 years) then you'll not need to worry about paying loan and the rent paid to you will be your clean profit...
happy business!!!

Answer 6

if you have enough funds to be sure it cash flows, I would say go for it. Pretty cool that someone else is paying for an appreciating asset that you get to keep! But, beware maintenance, management, and other must-do's are time consuming and suck up cash. Remember the old adage - it takes money to make money. If you go in undercapitalized, you will not have much fun.

Answer 7

Depends on many factors. What is the total rental income? expenses? location? condition of building? etc.

It might be a very good idea.

Answer 8

verify housing regulations on your section.in many cases the determine is two human beings in line with mattress room, so which you will choose a three mattress room. Occupany limits variety from section to section. verify you no longer violate the cut back, on account that gets you evicted in maximum situations.

Answer 9

Sounds reasonable. Real Estate is a good investment.

Answer 10

Looks like a good idea
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