The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Icecreamarsenal on June 14, 2014, 06:40:39 AM
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Interesting real estate opportunity
So I’ve recently come across a pretty interesting real estate opportunity. I’ve wanted to move closer to work. I currently live 23 miles away; this real estate opportunity is less than a mile from work.
What’s particularly interesting about this building is that it is comprised of 2 residential apartments above a pizzeria. I don’t have all the specifics yet, but the pizzeria is operational and making money, and I believe the owner of the pizzeria owns the building.
The apartments are 2 1-bedroom apartments that are 800 sf each. The pizzeria has seating for 30 customers.
The space is for sale for $250,000.
Its my wife, my baby of 6 months, and myself, so I’d be combining the 2 apartments on the 2nd floor. And as far as the pizzeria is concerned, I suppose I have the option of renting out the space as a working pizzeria. My wife and myself have been interested in owning and operating a restaurant, but the neighborhood that I work in is highly unlikely to be open to our concept.
Has anyone had any experience with purchasing, living, and working in a mixed commercial/residential building?
What particular things should I be concerned about that don’t apply to pure residences?
Obviously I may have jumped the gun by asking the forum before having all the specifics, but what should I ask the broker/owner for?
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I don't have the exact experience, but have been in the restaurant industry for a bit. I would strongly caution against opening a restaurant unless you have prior experience or a partner that does. It's a tough business and statistically you are likely to fail. Despite being a chef, I will never open my own restaurant. The headaches are endless even taking the money out of the picture.
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I'm currently invested in residential only properties, but from a brief foray in the past in business property I'd advise that you work with an experienced real estate attorney. There are a lot of ways to get burned in business rentals, and additional liabilities (you don't want to find out you need to do costly renovations to meet fire code in a commercial kitchen for example).
I do feel the right opportunities of this nature can be extremely rewarding if approached properly.
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I don't have the exact experience, but have been in the restaurant industry for a bit. I would strongly caution against opening a restaurant unless you have prior experience or a partner that does. It's a tough business and statistically you are likely to fail. Despite being a chef, I will never open my own restaurant. The headaches are endless even taking the money out of the picture.
+1 on this. I got talked out of a romantic notion I had to open a restaurant by an SBA volunteer with a hell of a lot more experience than me.