I’m trying to open up my own hardcore gym…ie one that caters to combat athletes, hardcore bodybuilders/figure, power lifters, strong man…basically people that are serious about meeting their goals.
Anyways, I found a building that needs some serious loving but the area has potential, decent visibility, on a corner of a mildly decent intersection and the like. The building appraises at 47k even though it looks pretty run down on the outside. To make it presentable, I’d prolly have to put in more than the building is worth. It hasn’t been occupied in at least 5 years since the only businesses that thrive in my city are restaurants. Do you guys think it would be unreasonable to make repairs to the building in lieu of a monthly rent payment if I were to lease it? Buying it is out of the question unless I can talk them down to like 10-20k…its just not worth what it appraised at to me.
There hasn’t been anyone in it in quite some time. Its costing them a couple G’s/year in property taxes. I’ve called the company that owns the building a few times on Fri and left voice mail so I haven’t even begun negotiating with them. Ideally, what I think is reasonable:
A. I pay property taxes on the building + make the repairs with an option to buy after 3-5 years
I can live with:
B. monthly rent payment around 300-500 bucks + I make repairs
C. monthly rent about 1200 and make no repairs
Is this unreasonable?
I wanna start small cause I have to compete with about 10 gyms in my city. Three franchise gyms, Golds, GymX, and YMCA which cater to bro-tards and cardio bunnies. I go to one of them on occasion. On any given 5-6pm, there will be a couple hundred people there and the 2 squat racks they have are empty.