I would like to get some advice/opinions on this office condo purchase in Orange County CA my buddy is about to make…
price: 40k
sqft: approx 450
assc fees: 120p/mo
rent: 550p/mo
new tenant has only been there for 3 months
What type of tenant? How long of a lease? What is the general turnover for tenants in the condo complex?
Thanks for the reply.
The current tenant is a loan mod company. I think the lease is only for a year and I’m really not sure what the general turnover rate is for the other offices in the complex. This would also be his first purchase of any type of real estate. Do you think this is a good deal to get his feet wet with?
The turnover rate is key on something like this. The lease is only for a year, so what happens if in a year the company is gone? How easy will it be to find another tenant? If it is fairly easy, then this could be a good way to get in and mayb improve rents and therefore value. The trouble is, properties with commercial tenants with short term leases are great opportunities, but have great risks.
Again, it depends on how confident you can be in finding a new tenant in 9 months.