Currently consideringa commercial lease option on a local property, bring in around 10% net on a $270K purchase price.
I’m a little unsure [8] of all the possible variations and differences involved, although on the surface everything seems pretty good. …Tennant guaranteed for 5 yr’s plus 5 yr option, tennant looks after all minor maintenance, rates, building and public liability insurance, xcess water etc etc.Would anyone with more previous commercial (read “any previous”!) experience care to throw some feedback in my direction… are there any major pitfalls I’m missing??
Many thanks for your input….
RosePink
Is the tenants business secure? Fiancial position of the company, individual etc?
Do you have the ability to absorb a 3-4 month vacancy?
Could the building be re-leased to another company/indiviudual without work being required on it?
James
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