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[{"id": "hk3vspp", "text": "My experience; these do not work. You need a stupid high per square foot rent from the exact tenants that are unable to afford it (seasonal farmer's stalls &amp; essentially Etsy-ish vendors).\n\nYour mileage may vary.", "replies": [], "depth": 1}, {"id": "hk3yw9p", "text": "Be careful buying in this market. Expect a significant dip, imo.  I've got experience I can share. Think about leasing first and sublease space to see how it goes, wait for a dip, and buy if still interested.  Feel free to dm me and we can discuss. There's so many options, so it's best to speak with a cre broker to understand what's available", "replies": [{"id": "hk4ero7", "text": "u/ozarkheaded \\- What are you seeing in your market?  I assume you are in Lake Ozark?  I also believe we are in the first innings of a dip.... especially in CRE.", "replies": [{"id": "hk5bov2", "text": "Things have been pumping for 10+ years out here near the West Coast at least. I've been saying a correction is due for years, so I'm shocked it still hasn't crashed. Things are too out of order to sustain these prices imo", "replies": [{"id": "hk5g1yp", "text": "I\u2019m in flyover.   Things are no where near the level they are there but it\u2019s still unsustainable for what it is.  Commercial (ex industrial) is in for a world of hurt.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hk466b4", "text": "I live a small city (250k) and people have done this and *maybe* broken even on buildings in poor condition. But it's incredibly management intensive to manage dozens of tenants. The only way I'd participate in this is with a headlease with a third-party manager.\n\nIf you're a glutton for punishment it could work but the risk level is high.", "replies": [{"id": "hk4bfea", "text": "Thank you for the comment.\n\nthe population of this town is 15k and I think I might be able to get this building for \\~500k.\n\nit is a very diversified town in race, im thinking about group up the minorities to start their own business...", "replies": [{"id": "hk4jxeh", "text": "So you want your tenants to be 33% you and 67% start up small businesses?", "replies": [{"id": "hk4x43e", "text": "Yea, I will use 33% for my own business. \nI know it sound ridiculously hard to manage. But it\u2019s a 30,000 sqft building on a 2 acres lot. I\u2019ve done business in the town, if I can get it around 500k it would be a steal.", "replies": [{"id": "hk808gf", "text": "What makes you think $500,000 for a vacant building in a 15,000 population town would be a steal?  Do you have any numbers to support that or does it just seem like you're getting a lot for less?  \n\nThis is how they get Californians to invest in crap Midwest markets.  Wow!  3000 sf for $50,000!  But they don't figure the rent will be way less than a dollar a sf and capex will eat them alive.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "hk4roi1", "text": "You're getting exceptional advice here.\n\n*(You should listen to it).*", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hk49q1m", "text": "Aesthetic workers do a lot better.\n\n200 sq ft can fit a hair dresser, nails, eyelashes, brows threading, etc. They have high enough income to support the rates you need. In my city maybe $1200/mo each. \n\nHowever you can fit 60-80 of them, might be tough to find that many.\n\nFarmers market tenants are better left to a Saturday tent sale in the parking lot. And make them bring their own folding tables, charge them $50/day.", "replies": [{"id": "hk4bhos", "text": "that's actually a very good idea, thank you so much.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hk4maf4", "text": "sounds like a absolute nightmare", "replies": [], "depth": 1}, {"id": "hk4pz1l", "text": "Would it be practical to do consignment bays like many antique \"malls\". Tenants rent stalls for a modest monthly rate and a commission on sales. Sometimes it's a co-op and the renters take turns with security and ringing up sales where other times the building owner has an employee on duty to help customers or put things online for the vendors. Maybe a coffee cart or some kind of snacks so people can hang out? Set it up as a tourist destination if your town isn't big enough to support it.\n\nA building inspection is always recommended. Make sure it is zoned properly for whatever you decide. Good luck!", "replies": [{"id": "hk4q5ua", "text": "Also, have a conversation with your insurance agent!", "replies": [], "depth": 2}], "depth": 1}, {"id": "hk4udyq", "text": "Turn the other 20k sq ft into self storage. It\u2019ll be way more profitable and a lot less headache.", "replies": [{"id": "hk5szfz", "text": "This", "replies": [], "depth": 2}], "depth": 1}, {"id": "hl6d57z", "text": "Late to the game but zoning is huge. What is the current zoning? Demising electrical/mechanical is expensive, depending on where you live a full set of CDs will be $8-15K, then the actual cost to demise will far exceed that.", "replies": [], "depth": 1}]