DJ Carroll
Member
I can Say this, 100% of the lease is the right off. I'm not sure he will need that much unless he does increase the Gross.
I didnt build my new shop last year because of the economy. Its dirt with a foundation. Ground work is done but I held off on the 350,000 dollar build.
I own the dirt and rent the building next door to a tile contractor. He went from 500gs a month to 55 . he is back up around 365 again and climbing, but his flipping houses is what has kept him afloat. ( also got my rent paid)
I have empty homes and commercial places I own. I purchase all the buildings I have ever occupied. Rent is a great way to start and I did rent my first place and had the oportunity in times like this to buy. I struggled to get the 5000.00 together for my first place. I sold it for 475,000 to a large corp four years later.
I will never say Dj has made a poor choice, early on the rent motivated me to sell. The fuel sayings payed the rent. Separating the work place from home is a great thing. It will give you focus to follow thru with busines plan.
If you didnt have the landscape biz and couldnt find your own house to accomidate I like the idea.
Owning your own home would be a investment for the future. The tax write off would be great also. The lease is a great write off also, but no future in leases.
Increase your gross and try to raise your net is the name of the game.
Make the location work, use the store front to market for sure.
I think your going to be ok, 600 like henry said is not a huge commitment. If it becomes a burden dont be affraid to cut loose.
Good Luck Dj, I think all in all your going to make it work. Nice Shop
I'm planning on buying a house next year and try to buy my shp the year after that ....