Rate my deal
4,000 sq ft building in Columbus. Revitalized area- in 5 years should be completed. 

Was a closed down rest. Now rented out on a 5 year lease at $2,200 a month. Owner pays taxes -$4k

$175,000 Purchase price  20% 10 year balloon amortized 30 year. 

To me the cash follows pretty dang well. No deferred maintenance everything replaced including roof within the last 5 years. 

Cash flow is showing me over $1,000 a month -$12,000 year. 

Good deal or not?

[{"id": "edrlhp0", "text": "Hi ! \n\nIs it a solo tenant in that facility ?", "replies": [{"id": "edrm167", "text": "Solo, it\u2019s currently being leased by a company who isn\u2019t using the front of the house. They are using the kitchen only. On a main drag and main road. If they leave in 5 years I know I would have no problem leasing to a small restaurant for the same price. Has all kitchen equipment , walk in coolers, full bar and everything ", "replies": [{"id": "edrm566", "text": "Awesome , just looking at the numbers and info you provided , looks like a solid deal.", "replies": [{"id": "edrmieq", "text": "That\u2019s what I honestly thought but just wasn\u2019t sure if I should pull the trigger. Needed some reassurance. I appreciate it!", "replies": [{"id": "edrmzrx", "text": "Just do all the due diligence you can, get a good inspection, have a good team backing you up (attorney, CPA, agent ,etc) \n\nIt\u2019s still nerve wracking as shit to pull the trigger on any property, but you are going to accomplish something 99% of people will never do...", "replies": [{"id": "edrnrao", "text": "I appreciate it. I think I\u2019m going to pull the trigger. ", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "edtcam0", "text": "Read the lease thoroughly and don't assume that you'll get full leverage debt when you model your returns.  ", "replies": [], "depth": 1}, {"id": "ee03xzc", "text": "What about other expenses? Accounting (should be simple), snow removal, hvac, mowing lawn, utilities?", "replies": [{"id": "ee06lkb", "text": "All tenant responsibility. No lawn. All utilities by them ", "replies": [{"id": "ee0ge9i", "text": "If the life of all systems you are responsible for are pretty long then this sounds pretty solid. You can\u2019t really beat 34% cash on cash and close to 50% including principal reduction.", "replies": [{"id": "ee0gn1h", "text": "I felt the same way. We are in negotiations now. Let\u2019s see where it goes!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]