The expenses appear to be WAY OFF! Throughout the United States, operating expenses run 45% to 50% of gross rents. So, I’d say the true NOI is more like $25,000. With a mortgage payment of about $60,000 per year ($600K, 8%, 20 year, commercial), this is a HUGE LOSER.
well what about the rents? how do they compare to market rents? low? high? even?
also, what about renovations? are there specific renovations that can be done to increase value? increase rents? increase other income areas?
also, depends on what you bring to the table in terms of cash, cash reserves, etc.
you say 10% down on 550k - in NY, that will be a TOUGH loan to get with that little down - can you put more down? other financing options?
what’s the story with current ownership?
is it managed poorly?
with that little down - either way, without the reserves to manage it (advertising), increase value (amenities, grounds, other income revenues, etc) - yeah that’s a big loser because you don’t have the mula to do it.