oportunity to be a landlord of my store

[ajay]

I have been given an opportunity to purchase the building I'm currently renting, my store is about 3k sq ft and next to mine is another 3k $store. The builiding has been around a long time and most of customers walk to my store. About two blocks down is another competitition.

I dont' know if it make sense for me to buy the building? My rent is preety cheap and location is decent - I'm currently renovating the inside.

what do you think - especially those of you that own your buildings and mats inside?

ajay

[Jim]

Go for it!!!! as long as the building is in good shape and their is no problem renting out the other parts of it....

I did and never regretted it..

[pete f]

Your rent is cheap now, what happens if someone else buys the building and when your lease is up jacks the rent? I have a mat that has cheap rent also, and was offered a chance to buy the building last year. The price was much more than i thought it was worth, and it would cost me more than I was paying rent, but there was other potential. The owner decided not to sell after months of back and forth, she wants to income, rather than the pay taxes. I am still 1st in line when she sells, I hope.
I have another mat I would not buy the building, it is not that great of a mat, volume wise, so I don't care if I stayed there or not. If your mat is a good one, I would try to buy the building if possible, it will be a good investment for you, as it protects your investment in your mat.

[CharlieS]

If the price is right, or even if its only slightly wrong, buy the property.

#1 - Peace of mind, you control your own destiny. A landlord has no legal obligation to give you any extension of your current lease. If you are on a month to month, your business is owned by your landlord, not you. All you own is the equipment, which probably has little value if it is more than 5 or 6 years old.

#2 - Future proof your costs. With a long term loan, your future costs are relatively fixes. Your rent will rise each year.

#3 - Equity buildup. By purchasing the property, you create a second business that will pay off the loan and create equity, using your own rent payments and that of the second store. In addition, appreciation over time will create additional equity in your store.

This is a no-brainier, if the price is right. Throw the numbers at us.

Charlie

[JBTcajun]

buy if rent doesn't increase to much. That property will most probably go up in value. You're interior improvements and equipment will defiantly go down.

[mike]

BUY THE PROPERTY !!!

If your competition down the road doesn't own his building, see if you can buy that also.

[ajay]

this location is high traffic with lots of potential. I have standing offer to already sell me store to someone since I renovated but still am not done. On one side of this store is a car wash, down from that is McDonald's. On the other side, two building down is dunkin donuts. two buildings down from dunking donut is my competition with old machines but still better traffic than mine. I originally wanted to buy that but owner didn't want to sell which included the building. that store does probably does 1.5 times more than me as of now - I still haven't advertised since I'm not done with everything.

The landlord is asking $160k for the building taxes around $7000. takes in rent from me at $1200 with next door at $1500.

It seems like it would be a no brainier but I'm still not sure. The landlord is super duper guy, he would never hurt me at least not intentionally.

is it worth it for me - is the question?

tx for your input so far
ajay

[Gary C]

I would do it. The taxes sound nuts to me. How does the city get 7k for a building worth 160k. That's a mil rate of 42.42 I think. Are you already paying your portion of the taxes? If so then it's a no brainer If not you might want to think about it a little more.

Gary

[Duane]

Buy it......

10 year loan at 8% and nothing down is around $1,942 per month.

Taxes are around $585 per month.

Total of $2,527 per month.

30 year loan reduces the total payments to around $1,700 per month.


You are already paying most of the mortage with rent.

[pete f]

I would be interested in buying the property, contact me if you decide not to. I would be a great landlord. How long is your lease?

[JBTcajun]

With the numbers as they stand BUY. Remember to operate as a separate business. A single person LLC works fine. Only need 1 form on personal taxes yearly. You can set it up you're self by downloading form from: secretary state you're state .gov. Money spent before you buy with a CPA will be well worth it. He will give info on protecting your self as a landlord too.

[Ken]

I would even pay a little over market price to buy my Laundromat's buildings but they are not for sale,I hate landlord.

[ajay]

I have a 10 year lease for 1 option. Taxes are crazy, I agree. Rent is low enough and I don't pay taxes. thanks for your input - will move forward with the purchase. Pete - I'll let you know if I don't get the loan, etc.

Just had a talk, here's a little more percise information:

taxes - $9100
insurance- 2300
rent str#1 - $1130(my laundromat)
str#2 - $1300

ajay