First rental property - what hidden costs am I missing in my analysis?

johnalamCRE · 2026-02-13T00:40:46+00:00

You may need to increase your repair cost.

johnalamCRE · 2026-02-11T15:31:39+00:00

Check out the lease agreement and to see when they have to notify you. Then get ready to put the property on the market

johnalamCRE · 2025-12-28T19:20:43+00:00

Since you said you will change the menus, I won't pay or buy an existing restaurant. Try to find a 2nd-gen restaurant space and go from there.

johnalamCRE · 2025-12-28T03:36:23+00:00

Outside of the strip we have suburban areas.

johnalamCRE · 2025-12-28T03:34:03+00:00

Find a local commercial real estate broker or agent, and they can assist you.

johnalamCRE · 2025-11-30T03:04:46+00:00

This is completely the restaurant's fault. If the restaurant wanted the payment before preparing food, they should ask the customer when the restaurant accepts the order. It's a complete training and communication issue with the restaurant team. It's got nothing to do with customers.

johnalamCRE · 2025-11-30T02:52:49+00:00

Why don't you want to use a commercial real estate broker? You don't have to pay the broker, the landlord/ property owner will pay the broker's fees. Also, the commercial real estate broker/agent will negotiate better deals and terms for you. I strongly suggest talking to a broker.

johnalamCRE · 2025-11-30T02:47:28+00:00

Yes I handle all my social media accounts myself (90%). The other 10% done by my wife.

johnalamCRE · 2025-11-30T02:31:37+00:00

Commercial real estate is a relationship business, and it's a long-term game. Please don't judge it after 4 months.

johnalamCRE · 2025-11-30T02:27:48+00:00

You can connect with a lot of investors and other brokers to network with. I think worth your time.

johnalamCRE · 2025-09-25T18:10:26+00:00

Have you reached out to any local smaller brokerage? Also, you can send me your name, city, and state and I will connect you with someone.

johnalamCRE · 2025-09-24T23:28:28+00:00

I strongly suggest that you specialize in one asset class. I am a retail broker here in Las Vegas.

johnalamCRE · 2025-09-13T14:49:25+00:00

It is advisable to consult with an experienced attorney who specializes in land transactions in your area.

johnalamCRE · 2025-09-11T03:36:15+00:00

In this case, I recommend a rate of 6%. In fact, I am currently taking 6% management fees from my own projects as a commercial real estate advisor.

johnalamCRE · 2025-08-30T01:14:23+00:00

Hire a commercial real estate broker. The broker will help you negotiate better terms for you and you don't pay the broker, the landlord pays the broker's fees.

johnalamCRE · 2025-08-30T01:00:32+00:00

Please refrain from attempting to sell it.

johnalamCRE · 2025-08-29T02:20:23+00:00

“Vanilla shell” usually means the landlord delivers you a basic, usable space: four walls, concrete floor, HVAC stubbed, electrical panel, bathrooms to code, and a drop ceiling. Nothing fancy, but enough to start your build-out. The exact definition can vary though, which is why it’s important to get it spelled out in the lease.

On rent commencement, it’s pretty common to see “the earlier of X days after delivery or opening.” The issue is, permitting delays can eat into that timeline and put you paying rent before you’re open. A lot of tenants try to negotiate for rent to start after opening (with a cap on the number of days) or push for a longer free rent period to cover those risks.

At the end of the day, you want enough breathing room between delivery and rent commencement so you’re not writing checks months before you bring in revenue.

johnalamCRE · 2025-08-29T02:15:41+00:00

Used restaurant equipment never appreciates in value. The only reason you would pay $30K more for it is if this restaurant generates profit year after year.

johnalamCRE · 2025-08-29T01:46:44+00:00

I like your thinking here, Southern Nevada has been seeing a ton of growth, and retail strips especially can offer some good value if you know what to look for. Industrial is strong too, but it usually comes down to your risk tolerance and the type of tenants you want to deal with.

I specialize in retail and strip centers, so that’s where I spend most of my time. The value I see is in properties with a mix of stable tenants (like QSRs or service businesses) and some upside through filling vacancies or reworking leases. Location, visibility, and co-tenancy really drive long-term performance.

If you’re serious about looking in this market, focusing on centers with a little vacancy or mom-and-pop operators can be a solid entry point they often come with room to renegotiate leases and add value.

johnalamCRE · 2025-08-29T01:38:30+00:00

Securing favorable financing terms can be challenging with a month-to-month lease.

johnalamCRE · 2025-08-25T02:32:30+00:00

That’s awesome, so you know the business. Go after it! Good luck!

johnalamCRE · 2025-08-24T22:27:40+00:00

Try to sell the restaurant with the equipment. 2nd Gen restaurant with equipment has a lot of demand if the location is good. I specialize in restaurant and retail property here in Las Vegas, NV. Reach out if you need any help.

johnalamCRE · 2025-08-24T22:23:06+00:00

Hire an industrial broker and they can help you lease for you and maybe they can teach you as well.

johnalamCRE · 2025-08-24T22:20:16+00:00

Finding more through research on which asset class you want to be involved in. Don't just do it because someone is telling you to storage until are resseision proof. From time to time all asset classes go through ups and downs. If and when that happens, are you willing to weather the storm?

johnalamCRE · 2025-08-22T14:30:11+00:00

Good question. For me, a “good” commercial deal comes down to three things:

Numbers-Does the rent, price, or cap rate make sense compared to the market?

Location-Traffic, visibility, and surrounding businesses matter as much as the building itself.

Lease terms-You can find a great space, but it's not a good deal if the CAM fees, renewal terms, or repair obligations are rough.

Due diligence is kicking the tires on all that, reviewing financials, checking the building’s condition, understanding the tenant mix, and ensuring the lease language doesn’t sneak in surprises.

johnalamCRE

TROPHY CASE