I'm in the process of looking for a income producing strip mall or anything really. I found a strip mall online in my area for 1.25 mil with an assumable mortgage for 1.1 mil. Its a new construction with 9 units but only 4/9 are rented out. each unit is appox. 1000 sq/ft. seller says he has an appraisal for 1.5 mil, but is based off of 8 units are all units occuppied....What other questions should I ask ?
[ Edited by kcjones1969 on Date 08/21/2007 ]
Don't forget to ask the following:
*How long are the leases on the 4/9 tenants Do you assume these leases and if so, do you have the ability to raise the rents if needed.
*How much is the land worth without the building? Local tax assessor should be able to break that out.
*What is the cap rate or rate of return on your investment. Is it comparable to other like properties.
*Do you have the right mix of tenants. A highend coffee shop next to a dollar store is probably not the right mix.
*Last but not least, what is the motivation for selling.