Build or Buy???

[grneyes1234]

I graduate in Dec with an Associates in ECE and I want to open a child care center. I think in would be great in my location. I would like to start from scratch but seems like I can't find the perfect and affordable location. I think it would cost more to build ground up. So I started looking into commercial property. I found a place that is 3,200 sq ft for 45,000 but has been gutted. It use to be a restaurant and it has been closed for 5 years or so. They started to remodel and just stopped. My question is this... Would it be harder to bring this property back up to code or buy and start ground up? For people who have bought property... What kind of question should I ask seller, prior to purchase? Will the HD come out and inspect without having bought this property? I'm so lost and don't know where to begin. I live in MS and I read somewhere that before I start renovation I should bring HD the floor plans. Any direction/guidance/advice would be of great help.

[Blackcat31]

Welcome to the forum!

I am not any help as I am in MN and have never built a center or run one either. I do think there are several members from your state on the forum though and perhaps they can be helpful for you.

[smart]

1. I'm not sure what the condition is inside, but if it's in "gutted" condition then there is probably no advantage. If the walls, floors and kitchen are in usable condition, there is an advantage

2. If you could get your local city and state departments to stop by for a courtesy visit, that would be idea. some places do that (in Chicago they do). Another bonus idea, google an architect who's done daycares in your area and bring her/him there for a preliminary bid and ask what would need to be done.

3. Ask the seller anything you want such as yearly property taxes, why has it been so hard for him to rent (Maybe the location isn't great), would he do a lease to own, would he pay for part of the renovations, would he finance some renovations and you can pay him back as part of the rent, what condition are the mechanicals like heat / ac / etc. in? who pays if they break?