Single Tenant Investment Property for sale at $184,900 in Cedar Rapids Iowa
The commercial tenant is two years into a five year lease and pays all expenses on this investment property! This is a high visibility and high traffic location easy to find in Cedar Rapids.
This investment property is over 1600sf on the main level and approximately 1000sf finished on the lower level.
The building was totally remodeled including new furnace and air conditioning in 2010.
Historically the tenants have been long term and the space was re-leased quickly.
Investment Overview and Summary
A cash buyer would see a 7-8% annual return on their investment.
Or a 25% down payment with a loan at 4.5% +/- would bring your cash on cash return closer to 15%
The tenant lease covers all expenses including taxes and insurance.
Contact me for more confidential information on this investment property
Why is this a good investment property?
I work with a number of apartment owners and people ask me all the time what is a good investment property to get started with, less than $250,000?
It’s tough to find commercial investment properties under $500,000 let alone this one under $200,000.
If a client has less than $500,000 cash or less than $100,000 to use as a down payment, generally the only choices are 4 -6 unit apartment buildings. These are great investments and the income pays off the mortgage over time and the returns are much greater than traditional bank savings accounts and CD’s.
Commercial Tenants vs. Apartment Tenants
I’ve heard and experienced both sides of this opinion.
Apartment owners like the fact if they have a tenant move out the others will “make the payment.” This is true but you have more turn over, tenants moving every 6-12 months, more repairs, calls, problems etc..
Commercial tenants generally sign a 3 -5 year lease and yes they can default or go bad but again “generally not as often.” True when the tenant moves out someone has to make the payment BUT if you build a reserve account over 3-5 years, you can afford a few months between tenants and some costs for updates.
The answer is Diversify
The best answer is to own both commercial AND apartment investment properties so any one vacancy or repair can be covered by the other investment property.
Make a 5, 10 or 20 year plan to purchase a property a year or twice a year and keep building your portfolio.
Time and time again we see real estate investors out perform their retirement pensions and 401k investments in much shorter time!
Contact me for more details or with any questions on investment property in and around eastern Iowa!
View more details on our Skogman Commercial Site here: http://bobrandklev.skogmancommercial.com/property/35665161/3601-MT-VERNON-RD-SE-Cedar-Rapids-IA-52403