# Possible studio purchase...Need advice!



## eric-holmes (Apr 9, 2011)

I live in a small town, 1,900 people, which is 5 miles outside of a larger town, 40,000 people. Today I was driving to work and I saw a building for sale on the main street of my town. It is right on the main road, right beside the water department and courthouse, right across from the bank. Now, like I said, this is a small town. Aside from what I mentioned there is not really any other businesses. 

Onto the specifics, the building is 2,600 sq ft. and and they are asking $12,000. I peered into the window and it appears to all be sheetrocked. It used to be the Masonic lodge before they closed, so I know it is wired and plumbed. It has a small "secretary" area set up in the front and then a hallway leading to the back with larger rooms. I know it is small town but it seems cheap. People pay 12,000 a year to lease buildings this size in the larger town. 

Now for my questions. What would you do in this situation? Do you think people would drive 5-10 miles or 10-15 minutes to a studio? I mean this thing could be paid off in 5-8 years. Then it would be practically rent free aside from utilities. Just looking for a smart business man to help me out and give a little advice.

Thanks!


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## Derrel (Apr 9, 2011)

Good Lord, JUMP ON IT NOW! $12k to BUY it outright? On the main drag, across from the courthouse and the bank???? Even if it's a dump that investment is a pittance.


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## eric-holmes (Apr 9, 2011)

But when I say beside those things, It's a town of 1,900. Very small town.


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## eric-holmes (Apr 9, 2011)

I called on the building. It has an old flat roof. This building is probably 30-40 years old and it has one of those flat roofs. Well, it's leaky. Approx 8k to fix it.


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## c.cloudwalker (Apr 9, 2011)

My first reaction is: skip it! Cheap buildings are cheap because there is no money coming through the area.

But then again there is not info enough in your post. There again #2 is that there probably never will be.

You need to analyze the situation very carefully, ie have someone do a traffic count type of thing to start with, maybe. That will give you a first idea. But it won't be enough. You will then need to analyze buying habits in your area. Will people go 5 miles out of their way? Etc, etc.

I once lived in a small town of slightly under 5,000 people only a few miles from a larger one of 25,000. People from the larger one did not come to ours because because they saw us as hicks... It didn't matter what we had to offer. And we had the best fooking pizza in the area... :lmao:

There is a lot more than a cheap building.

Not to say this is not a possibility but no one here can really tell you one way or the other.


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## KmH (Apr 9, 2011)

You'll need to do way more than just peer in the window before a bank will lend money to buy the place.

Don't forget to add what it will cost you beyond getting the roof repaired to get the place ready to open.

By the same token, you may be able to barter for some of the work the building needs and/or you may be able to do some of the work yourself.


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## Bitter Jeweler (Apr 9, 2011)

All that, and, how much will you need to spend to even try to attract the people of the larger town? Speculate what the return on that continuing investment will be.

My personal opinion, is to set up shop where the people are.


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## eric-holmes (Apr 9, 2011)

Taking. Risks. Sucks. Period.


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## Bitter Jeweler (Apr 9, 2011)

Yes. Yes it does.


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## eric-holmes (Apr 9, 2011)

Bitter Jeweler said:


> All that, and, how much will you need to spend to even try to attract the people of the larger town? Speculate what the return on that continuing investment will be.
> 
> My personal opinion, is to set up shop where the people are.


 
This is all very true. But even after that, to have a shop thats totally yours for around $20k on a main street is pretty darn good. Thing is, the larger town is rapidly expanding. As it does, people seek out land in my town to have a little privacy. I speculate that one day the larger town will rapidly become big enough that my town will become almost like a part of that town. Almost like it will consume it.


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## Bitter Jeweler (Apr 9, 2011)

Thats why it was my opinion. 

The flip side is, if you can manage it, and it is an acceptable risk to you, go for it!
A friend told me, when thinking about striking out on my own, to draw up the worst case scenario. Really look at it, and see if the worst case is acceptable to you. 
For me it was loosing my house and moving into an apartment. I hate my house. So I took the risk! 

It's a great deal if you think that area is going to gentrify. In the long run it could be the best decision you ever made.

Good luck to you, sir. Nothing ventured, nothing gained. :thumbup:


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## Rocan (Apr 9, 2011)

if its good enough, people will come. set it up right; contact some professionals and rent the rooms out to them for an hourly rate. then also have a room for yourself where you hold your own sessions. if its within an hour of a large city, then people will come.


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## Derrel (Apr 9, 2011)

One thing you'll find out about building repairs is that there is a "quoted price" to repair something, and there is the do-it-yourself price. In the case of a flat-roof building, and $8,000 roof repair estimate is outrageously high, compared with the DIY cost. It's like a rooftop moss removal on a one-story, 2200 square foot home: $500-$650 for a contractor to spray the roof and kill the moss, then remove the dead moss. The DIY cost of this project? $59.99, and two weekend days.

How much roofing can you buy for $2,000 at Home Depot right now? I highly doubt that the roof even needs a tear-off...you could probably slap a new one on right over the old roofing. Not sure where the $8,000 roof repair cost came from, but most likely a quote from a contractor looking to make a $3,500 profit on a simple, fast, ONE-DAY tear-off and re-roofing job.


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## Propsguy (Apr 9, 2011)

The investment is so small that it might be worth considering an alternate business plan... Buy the building and use it for something else (I don't know what, but something less risky than a photography studio), that has a very low starting investment, and use that revenue to fund the future development of a studio, if it looks like a wise transition...

For 12K, I'd buy it just to put all my crap in...


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## sierramister (Apr 9, 2011)

IT depends on his meaning of "flat".  If it's flat as in a 2-12 or something and with shingles, that's an easy job.  But if its flat as in flat on top of a commercial building, applying tar might be a little more expensive. 





Derrel said:


> One thing you'll find out about building repairs is that there is a "quoted price" to repair something, and there is the do-it-yourself price. In the case of a flat-roof building, and $8,000 roof repair estimate is outrageously high, compared with the DIY cost. It's like a rooftop moss removal on a one-story, 2200 square foot home: $500-$650 for a contractor to spray the roof and kill the moss, then remove the dead moss. The DIY cost of this project? $59.99, and two weekend days.
> 
> How much roofing can you buy for $2,000 at Home Depot right now? I highly doubt that the roof even needs a tear-off...you could probably slap a new one on right over the old roofing. Not sure where the $8,000 roof repair cost came from, but most likely a quote from a contractor looking to make a $3,500 profit on a simple, fast, ONE-DAY tear-off and re-roofing job.


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## ghache (Apr 9, 2011)

Id say once the roof and the overwall building is fixed, if its wired and the pipes are good, you might have youself a really nice place for the price. once this is done, if you someone handy enough to finish the inside the way you want by yourself, why not. make sure you know what are the city taxes, insurance and all that side cost.


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## thierry (Apr 9, 2011)

You could repair the tar roof yourself for a minimal amount.. I have done only 3 tar roofs on commercial buildings.. and i know just from 3 that i could do one no problem.. so you could honestly do it yourself.. it doesnt take a rocket scientist.. 8,000 is ridiculous


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## eric-holmes (Apr 9, 2011)

ghache said:


> make sure you know what are the city taxes, insurance and all that side cost.


Good catch, insurance crossed my mind but the property taxes never did.


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## FoggyLens (Apr 10, 2011)

I just want to say this. We are getting a new roof on our house. I know its not a commercial building but never the less a 3000 sqft house. The whole roof is a little over 7,000 this is for the life time shingle and that includes new gutters. I would get your own estimate done look at some DIY stuff and Like someone else said this could be something to make the price a little negotiable. My little sister who is in a another state then me has driven an hour for a shoot cuz she loved the photographers work. If you build it they will come..


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## c.cloudwalker (Apr 11, 2011)

Some interesting ideas here but a dose of reality needs to be injected.

First, can you pay cash for it. Banks will not usually do a mortgage for such a small amount. Do you have a good relationship with yours and will they help you figure out a cheap way to finance it?

Roof: most banks will not make a loan on a building with a leaky roof unless the roof is repaired. And they usually want a contractor to do it before the sale.

What is the ceiling height? For a studio, an 8ft ceiling is not good enough. I wouldn't even consider it with less than 12, personally.

A lot of repairs and upgrading can be done by yourself easily enough. If (and that's a big one) you are good with this kind of stuff. You don't want to bring in customers into an unsafe building. Electricity needs to be in very good shape. If you can't do the work yourself, it will cost way more. Also, if you can't do the work yourself you are probably not able to judge of the state of things and may find quite a bit more that needs fixing after you move in...

But there are possibilities. I bought a complex of buildings not too long ago. One of them had a flat leaky roof. We tore it off and put a new metal one in place while raising it and pitching it at the same time. It was done in less than a week and cost less than $4,000. Then again, I have restored a few houses so that construction work is easy to me. Especially with the help of a few like minded friends.

The idea of laying a new roof on top of the old one is usually not a good one. Roofers suggest it because it is easier for them and cheaper for the owner so it is attractive but not the best idea. Flat roofs are the pits to maintain so if you can pitch it as you re-do it, you would be cool for much longer.

One last thought, You don't need such a large space for a small studio. Cut the space in half and rent it out. With the right deal, it might pay for the building. That's what we did with the complex I bought. There was one store in there when we bought and we brought in a second one. They pay for the mortgage. Another thing we did in there is set up a rental photo studio. The one for which we raised the roof. It is rented regularly enough to have paid for the repair already and on its way to pay for the gear...


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## LarissaPhotography (Apr 11, 2011)

What kind of photography work are you planning to do there?  The only reason I ask is because there are certain types of photography that are more likely to land "drive-by" traffic.


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## SkyBlue (Apr 11, 2011)

A newbie but here's my 2 cents...

This is calling for some outstanding marketing skills. I think it should be something like studio/ coffee shop/ bookstore. 
You need to give them a vivid answer on why they should come to your place/ studio. 
And if you've got the answer, they will come to you.

I hope you can post some photos of that precious place...


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## eric-holmes (Apr 12, 2011)

Went and looked at the place today. Definetly too good to be true. It basically has four walls. The celing is ruined. It rained here 2 days ago and it is still dripping. Repairs would sink approx 25 grand. Thanks for all the help though guys.


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## Bitter Jeweler (Apr 12, 2011)

Bummer.

Well, there is always renting in the bigger town.

Good luck! Keep your eye open.


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