How
John Vanhara I went to Memphis last weekend to check office building commercial deal. What really attracted me was really low price per sq. foot for decent looking office building. You can purchase commercial office for about $50 per sq. foot. When you check the going rental rates they are around $9-$11 per sq. foot.
If you get the building fully occupied this should give you incredible cash flow. Example: 10,000 sq. feet building rented for $10 per sq. foot = $100,000 cash flow/year. Purchase price $50/sq. foot, so you buy it for $500,000.
This is very simplified, but I think there might be very good opportunity. Another good point is that purchase price is well below the replacement cost. Try to build something new with today’s prices of material and labor. I think it would be very tough to get below $90-$100 per sq. foot.