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Metalworking (rec.crafts.metalworking) Discuss various aspects of working with metal, such as machining, welding, metal joining, screwing, casting, hardening/tempering, blacksmithing/forging, spinning and hammer work, sheet metal work. |
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#1
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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?" |
#2
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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 |
#3
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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 |
#4
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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 |
#5
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Warehouse in a black town? Buerste?
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#6
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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. |
#7
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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 |
#8
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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 |
#9
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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. |
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