Clifford's Hair Salon buildingCurrent condition of property:
Clifford's is a successful hair salon business that attracts many residents to the downtown. The 2nd floor has a travel agency in a space that has not been updated in many years.Project potential:
The rents collected on this property are not high, but at least the entire structure is currently rented with multi-year leases. Both businesses are well established. To keep the tenants, some routine maintenance is necessary for the building, costing about $10 per square foot.
Market value of this property as is: $285,000
...Value of land alone: $50,000
Size of each floor: 36x70 ft.
Current income of the ground floor ($11/sq.ft./year)
Current income of the upper floors ($8/sq.ft./year)
If the building had a full rehab:
Cost to rehab ground floor ($80/sq.ft.)
Cost to rehab upper floors ($60/sq.ft.)
Potential income of the ground floor ($18/sq.ft./year)
Potential income of the upper floors ($15/sq.ft./year)
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