Hi everyone,
I have recently been offered a deal regarding a piece of commercial real estate. I am not experienced in this area, so I'm asking for general comments and advice - anything, even an internet link to a relevant site may be helpful.
As a bit of background: I have residential properties that I rent - 1 is leased, another is a vacation property I rent out when I'm not using it. I have had rental real estate of one form or another for 8 or 9 years. So I am not a real estate newbie, but I am not experienced in this area either.
The deal is: 950k for the property. income is 64k/ year triple net. Renters seem fairly stable for the most part. Leases are staggered over the next 4 years. I can borrow 650k at 4.25%. (If I borrow more, interest rates go up)
So, my questions are:
1. what are the differences in commercial and residential renting?
at first glance, managing a commercial property seems easier, and arguably more profitable.
2. any potential pitfalls I should actively avoid? (and how?)
3. Has anyone here done this before who can share their experience?