Warehouse in a black town? Buerste?
 

On Sep 13, 10:37*am, "Michael A. Terrell"
wrote:
Ignoramus20659 wrote:

Been looking at finding some investment to make. There is a big
liquidation auction coming up. Some CNC/screw machine company is
bankrupt.

Along with it, a warehouse is offered for sale. It is actually big,
19,000 square feet (not a typo) on 1.4 acres of land.

* *A 120,000 square foot building with about 20 acres sold for
$1,000,000 near here a couple years ago. *Fully air conditioned with 1/3
office space, and the rest manufacturing / warehouse space.

--
Politicians should only get paid if the budget is balanced, and there is
enough left over to pay them.

Where is "here?"

Warehouse in a black town? Buerste?
 

On Mon, 13 Sep 2010 07:42:41 -0700 (PDT), rangerssuck
wrote:

On Sep 13, 10:37*am, "Michael A. Terrell"
wrote:
Ignoramus20659 wrote:

Been looking at finding some investment to make. There is a big
liquidation auction coming up. Some CNC/screw machine company is
bankrupt.

Along with it, a warehouse is offered for sale. It is actually big,
19,000 square feet (not a typo) on 1.4 acres of land.

* *A 120,000 square foot building with about 20 acres sold for
$1,000,000 near here a couple years ago. *Fully air conditioned with 1/3
office space, and the rest manufacturing / warehouse space.

--
Politicians should only get paid if the budget is balanced, and there is
enough left over to pay them.

Where is "here

Purty sure he's near Ocala, FL about two hours north of Orlando

Karl

Warehouse in a black town? Buerste?
 

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.

JOhn

Warehouse in a black town? Buerste?
 

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

Warehouse in a black town? Buerste?
 

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

Warehouse in a black town? Buerste?
 

On Sep 13, 6:44*pm, Ignoramus20659 ignoramus20...@NOSPAM.
20659.invalid wrote:
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

Think of it this way, Iggy.
You need a tenant who cannot buy a building on his own, but still has
enough money to pay you more money than it would cost to buy his own
building.

Warehouse in a black town? Buerste?
 

On Mon, 13 Sep 2010 18:44:15 -0500, Ignoramus20659
wrote:

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

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?

I'd be working at evaluating the market. If there are lots of empty
buildings and few takers, then maybe offering low rent will help score
a tenant. Then again, you might be attracting the most-likely to make
late payments, etc. Have you figured out the cost/time to evict a bad
tenant if he refuses to leave?

As it happens a friend has decided to invest in low-cost rental homes.
$60k for the first one IIRC. I think he'll succeed because he can do
all his own work and can relate to the renters circumstances. So his
default rates should be much lower than average. He knows it will be
work though, and he wouldn't be doing it if he could earn more on safe
investments.

Wayne

Warehouse in a black town? Buerste?
 

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.

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.

i

Warehouse in a black town? Buerste?
 

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.