Ignoramus5013 wrote:

On 2010-09-13, john wrote:
Ignoramus20659 wrote:
Just a little reality check (and yes, I feel stupid for asking).

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.

I do not want yet to ask him back, does this sound like a per month
amount on a 19k square feet building?

If so, it is pretty steep to carry that while looking for renters, and
a big hurdle?

Anyone with some experience, does this sound like per month or per
year.

If it is per month I will pass.

My 3,400 sq ft above ground house is insured for $1,200 per year.
(and it is not in Dalton and it is occupied). If I multiplied that
amount by 19000/3400 I would get 6,705 per year. So I think that 7 to
10k is per year. I could live with that.

I know that this sounds really dumb for a question, but I would rather
look dumb than plop money towards something that wil cost me a fortune
in insurance.

i


The taxes seem very high for a 300k building. 31,000 a year is over
10 percent which doesn't seem right. Also I insure a 35k sq. ft
building including all risks as a business for about 8 k per annum.
Let that building sit idle while you own it will cost you a fortune.
See how many vacant buildings there are in the area. Unless you have a
prospective tennant with an ironclad lease and a big bankroll I would
be very cautious about buying this building.

The best income properties are slum properties with section 8 tenants.

They lowered taxes due to vacancy to 23k per year.

The vacancy rate, just based on looking at building on the same
street, is not that huge. Not nearly as bad as in Addison, where it
looks like a neutron bomb went off.

Hmmm, they should try to emulate Addison, TX which is a booming
commercial / retail city.


I could probably make 3k per month from that building by just selling
equipment part time, but this is not what I really want to do at this
point.

$3k/mo would still be a loss, with your $2k/mo+ property taxes, $1k/mo
insurance, and likely $500/mo+ utilities.