Commercial property may serve an operating business or provide rental income. Each purpose brings different cash-flow assumptions and ongoing costs.

Consider occupancy, maintenance, refurbishment and time before the property becomes productive. A purchase price alone does not describe the full funding need.

Assess repayment against realistic income and alternative outcomes. A future sale or refinance should not be treated as certain.

Key takeaways

  • Commercial property may serve an operating business or provide rental income.
  • Consider occupancy, maintenance, refurbishment and time before the property becomes productive.
  • Assess repayment against realistic income and alternative outcomes.