Should I buy an old run-down Garage?

[woodrail]

Hmmm 30k for the building?

My 4000 square foot lot with with a 2100sqft building cost me $200k . Am I missing something here?

Yea, the building is in the rust belt, beat to ****, is 60 years old, and the owner is retired in Florida and his kid is rich and not interested in it!

The structure is probably more of a liability for them than anything.

 

[woodrail]

An interesting update......

The city a couple of weeks ago started the process to tear down this building due to "lack of upkeep and unsafe conditions". The tenants abandoned the property (and their bills) some time ago leaving the building in limbo.

Since that time, kids have graffitied it and broken windows to get in. That glass and, tall weeds, and the general appearance of the place warranted the cities action.

The Building Department basically legally broke into the building and did an evaluation. They deemed the facility structurally sound, but still a nuisance. During further proceedings, the owner agreed to "clean up" and secure the place.

Yesterday I stopped there. Some guy was moving stuff around. We talked informally and he told me the owner was trying to sell for $120,000 (I couldn't stop laughing inside), the prior tenant was paying $1,000 per month.

I threw out the idea that I would basically care for the building in exchange for the use of it. I'm thinking of a 1 year deal with option to buy at a realistic price. Note that I can get a somewhat nice building in a much better area for half of what he thinks this is worth.

I'm awaiting a call to meet the owner personally.

Dream or nightmare, I guess looking is free!

 

[ishiboo]

One more thing. I don't know how far away this is from your house, but that can be a challenge too. My shop is about 5 miles from my house. I make it work, but there are two problems. First, it's hard to get there sometimes. With work and day to day family stuff, I find myself over there from 11pm to 3 am most of the time.

Second, it seems I always have stuff in the wrong place. 1/2 my tools are there, 1/2 at home. Over time I've pretty much duplicated everything, but that's expensive in itself.

+1 for this consideration, especially if you drive something with lower mpg. I spent a ton of time and money driving to and from my 30x40... no longer will I be on a separate property unless that's the only option!

 

[ishiboo]

An interesting update......

The city a couple of weeks ago started the process to tear down this building due to "lack of upkeep and unsafe conditions". The tenants abandoned the property (and their bills) some time ago leaving the building in limbo.

Since that time, kids have graffitied it and broken windows to get in. That glass and, tall weeds, and the general appearance of the place warranted the cities action.

The Building Department basically legally broke into the building and did an evaluation. They deemed the facility structurally sound, but still a nuisance. During further proceedings, the owner agreed to "clean up" and secure the place.

Yesterday I stopped there. Some guy was moving stuff around. We talked informally and he told me the owner was trying to sell for $120,000 (I couldn't stop laughing inside), the prior tenant was paying $1,000 per month.

I threw out the idea that I would basically care for the building in exchange for the use of it. I'm thinking of a 1 year deal with option to buy at a realistic price. Note that I can get a somewhat nice building in a much better area for half of what he thinks this is worth.

I'm awaiting a call to meet the owner personally.

Dream or nightmare, I guess looking is free!

Often times it's more fun wanting than actually having

Whatever you do - there is some GREAT advice here about the tanks and overall liabilities... make sure your bases are covered. If you do go any farther than renting, I'd actually consult with an attorney to make sure everything is covered properly.

Also consider things like asbestos, lead paint, etc. which will be an issue if you ever renovate. The tests for these are cheap.

 

[nolimits76]

Good luck with this. My company is renting a similar space for $1,000/mo. Actually we considered buying the place, but it is owned by the City and there are "pollution issues", etc and the City thinks they have a gold mine.

In reality, the City overpaid for the property and no longer uses it and is facing big pollution cleanup fees.

As the renter, the worst part is theft. We have put security fencing up and even hired a security guard for a year or longer. We have come to accept a few things will be taken, and had to evaluate if the security guard or small items being taken were more costly. In the end we got rid of the security guard.

The other major issue is if people aren't stealing, they are squatting in the area.

Guess it depends how bad your area is, but I think playing caretaker or renting for a year is a GREAT idea before you invest any real money.

 

[InPrimer]

my question centers around ( if you buy) the value of the bldg and the yearly cost to insure it.In other words if the ins co declares it a potentional hazard is it worth the cost based on the opinions of some of the fire crowd

 

[captain14]

Frank Brannigans book "BuildingConstruction for the Fire Service " that a steel framed roof like we are talking here will start to expand/twist/ and fail at 1000 degree heat. The walls that are attached to the steel will be pushed/ pulled by the steel overhead. 1000degree temperature is just getting started during the fire.

Great idea but the thieves will pay attention to the activity and the building and visit.

 

[rsanter]

If I was to do something like this ... what I would do is buy, create a street front space that could be rented out.

The goal being that there is a business there and in operation for a lot of hours of the week. Not really any matter of what it is, might be a nail shop, an office for somebody that just needs office, really any sort of small business can fit the bill.

Get a few bucks a month for the annoyance of being a landlord you get the security of a set of eyes on site most days, and there are some tax advantages you can use to further defray costs of ownership.

Lock up the remaining space like a vault (and keep the tenant's eyes out of there too) and play to your hearts is content.

This is what I was going to say

Bob

 

[sberry]

So, I'd love an opinion or advice from anyone thats "been there"!

This might not be you so its not advice but strictly an opinion. I have seen guys paying storage on 15 pinball machines and everything else you can imagine. Looks to me like another junk building about to be stuffed with more junk.

 

[Toxicscrew]

Very cool building. Definitely should be saved and not turned into a another empty lot.

Does Ohio have a Historic Tax Credit program? Or Brownfield? The former is a program to alleviate the costs of renovating historic buildings, used to be a federal program. Missouri started the first state run program in the late 90's. Hugely successful, has saved tons of great buildings from the wrecking ball. There are ways to sell the credits so you can get $ upfront instead of waiting the tax credits to kick in after the reno is complete.
The latter is a program for the cleanup of environmental issues, such as lead paint & the buried tank.
My shop landlord is in the process of using both of these programs (and a couple others) to renovate their two buildings. The front of which will be office spaces, the rear are shop spaces(as someone mentioned earlier). Actually my brother in law worked for a company and the owners kept the back area locked up because they had like 30 Vettes in the back.
Also, check with the city for their programs, St Louis has a facade program that they will pay 50% of the costs to upgrade street appeal. Also will split costs of sidewalk repair.

If you show that the building is well taken care of and people are around, it will go a long way to the security of the bldg.