Originally Posted by
Xno Kappa
Figured I'd ask here instead of starting a new thread.
I'm looking into buying a corner building in NJ. I currently own two homes, at one time I had three, so the process itself is nothing new to me. Made a pretty penny off the sale of the third home, and feel like I have a huge opportunity on my hands with this situation.
This is completely different from my previous purchases; as it is a building with a town home on top, and on the bottom a bar that currently has a liquor license. If you didn't know, obtaining a liquor license in NJ is notoriously difficult. It is limited to population and issued to the property, not the individual. The current owner is willing to sell it to me at roughly 370k~, dropped from 410k~, and until a proper appraisal I'm convinced the value is at least 700k. My concern is dealing with the bar.
I won't run the bar myself. I plan on leasing it, raising it's rent out the ass from it's current state. The more I read into it though, it seems the liquor license also works on a points system as far infractions are concerned, i.e. selling to minors, bar fights, etc. Accumulate enough points and the state pulls your license. New owner inherits any old infractions.
Furthermore, NJ property tax seems ridiculously bonkers! Where as in I'll pay 800 in CO, 4.4k in VA; with this property I'd pay 8.9k which is fucking absurd!
What do you think BG? Crunching numbers it seems like I'd be really hinging on getting the property underpriced while collecting an exorbitant amount of rent for the bar.