How to analyse this Gas Station Deal

Exxon Gas Station on a busy intersection,
on opposite road have a 5 cents cheaper Gas Station,
which has 9 Pumps, one Mini Mart

Station Lot Size: 38000 Sq. Ft.
Contains two Buildings
Building #1: 2500 Sq. Ft, has one Mini Mart and a Franchised fast food restaurant, open 24 Hr, Fast Food Revenue 50k/Month,
Mini-Mart Revenue 50k/Month, Both profit Revenue ratio is 33%

Building #2: 1800 Sq. Ft, Has a Franchised Garage for 6K/Month, NNN,
5 Years Contract left.
This station has 6 Gas Pumps, Profit 10 Cents/Gallon, Sale 1500 Gallons/Month

Electricity Cost: $4000/Month
Asking Price : 6M

It looks good, but I know some trick here, how to discover it. It is in LA

所有跟帖： 

• do a full scale cash flow, and profit/lose spreadsheet -云起时99- ♂ (261 bytes) () 08/10/2008 postreply 08:21:09

• CAP is 10%, it is too good to be true in LA -maywalk- ♀ (467 bytes) () 08/10/2008 postreply 11:07:50

• just like regular house, do a inspection -云起时99- ♂ (306 bytes) () 08/11/2008 postreply 06:38:01

• traffic is low at 1500gallon/month. -somersetgarden- ♀ (0 bytes) () 08/10/2008 postreply 10:45:03

• 回复：traffic is low at 1500gallon/month. -maywalk- ♀ (41 bytes) () 08/10/2008 postreply 10:55:42

• Sorry, the correct is 150000 Gallon/Month -maywalk- ♀ (0 bytes) () 08/10/2008 postreply 10:58:32

• You need check the expense. -somersetgarden- ♀ (22 bytes) () 08/11/2008 postreply 16:31:24