Can I get some advice

I currently live in PA but work in New York state and Im thinking of moving to NY. (Elmira)

There is an owner financed storefront property with 1 apartment above it. I was wondering what type of investments these make and if I should even bother. Id much rather do something like this than waste money renting. Its an ok neighborhood with a lot of foot traffic on a corner lot of 2 main streets. The cost is 45k and rents in that neighborhood are between 500 to 600 plus utilities.

I would live in the upstairs apartment and rent the storefront or possibly use it for other endeavours I occupy myself with.

Any advice? warnings? guidance? :slight_smile: Thanks.

I think there’s a lot of local agents. Better search it on the internet. You will get your idea about other properties available there. Hope that’ll help.

is the storefront currently rented?

if so - for how long?

what type of business is there (if it’s rented)?

what type of business can rent there (if it’s not rented)?

how “recession-proof” is this type of business?

what’s the condition of the building? do you have money to fix it up and manage it?

45k is very little - i say - go for it if it’s already rented with a tenant that’s been there over 2 years.

then just check the lease they tenant has currently - look for things like rent increases and options and how much longer they have on it.

Find a good agent that really knows the market in that area, this will save you tons of trouble. It’s better to spend the time to find a good agent first, than spending the time dealing with troubles afterwards.

Find an agent and mentor or successful investor in the area to help evaluate the deal. Do you have any numbers for operations?


I preface this by saying that we don’t know much past what you’ve given us about the $45K and the market rents (i.e. - condition, RE taxes, etc.)…

That said, from what you posted you are buying this as a residence first, investment second… If that’s the case, if rents are $5-$600 per month… an 80% mortgage at 5.5% would only be around $240-$270 per month, plus your utilities, real estate tax, and insurance…

So you end up owning it, because you want to live there anyway, with a store front you can rent or use to occupy yourself with, as you put it, for less money than you would spend on rent anyway… From that perspective, it’s a no-brainer… This also assumes you can get a mortgage on something like this…

Christopher W could give you some advice on whether that is feasible…

If you were the landlord for someone renting it (local bagel / coffee shop maybe with all the foot traffic), you wouldn’t have to go far to collect the rent… :biggrin