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Ignoramus20659

On 2010-09-13, wrote:
On Mon, 13 Sep 2010 16:10:56 -0500, Ignoramus20659
wrote:

The seller answered my question for his "insurance costs". He told me
that it is insured with some other properties, but his best guess is
7-10k.

What matters is what you'll have to pay. I'd call some insurance
agents, and allow for the rate to go up at least 10% per year.

I'm pessimistic about your chances of keeping the building occupied by
paying tenants. As opposed non-paying ones, which are easier than ever
to find . :-)

Wayne, do you think that it is possibly a question of how much I am
asking?

If taxes plus insurance are $40k, and they pay me, say, $70k, which is
$1.57 per square foot per year, I will get a very acceptable 15%
return on investment. In a couple of years I could renegotiate if the
economy picks up.

I would like to know what you think, as you do have a mindset to
put reality above preconceived notions.

i