Rental Units And A Bar

JamesStreet profile photo

I was wondering if anyone has bought a building housing a bar with rental units above it? My thoughts are this. The building and the bar are for sale as a package. I thought buy both keep the real estate sell the bar off but have it stay as tenent. It would pay enough to cover mortgage and the rental income would be my cash flow. I have others who are intrested in one or the other. Biggest fear is the bar and being sued. Any ideas? Thanks

Comments(2)

  • commercialking2nd October, 2006

    Assuming this is in MN there are a lot of small bars for sale and very few buyers. Same if you are going to lease it out. Then you have another problem-- a bar owner that cannot afford to buy probably has a drinking problem which leads to a credit problem which leads to you getting paid slowly.

    Not always, but often enough to be cautious.

  • JamesStreet2nd October, 2006

    Thanks for the input. The bar is in a college town but it may be an issue. Best to think this out more.

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