I would assume that any building I will construct/renovate will quickly be leased out once I open the doors. However, I will likely not have many buildings. The reason of why is the building must be able to generate $15,000 or more per month. The reason is utilities, employee pays, systems management, and so on will need to be paid no matter how many tenants I will have. With that said, I would likely not be able to buy a small building due to the fact that I won’t generate enough money. Assuming that each rental will be $1,000 – I will need 15 said units in order to make the money worthwhile that it took to renovate, and lease out. Any building acquired will be paid for in full without any mortgage. This will make it easier to weather any would be financial storms.
Currently, the only building worth acquiring or building will be the Tower. This building will be a template of what I would want every construction to be. However, it would take months to generate the money to start work on any project that I would need to build up. Revenue from the Tower will likely be $1,000,000 after costs of operation. This sounds like a ridiculous amount of money, but this is because hundreds of households will live in this building. By collecting the revenue from these tenants, and HUD, it would add up quickly. And since this is one building, I will assume $10,000 for the normal operating costs. Keep in mind that FSP Realty will seek to be a completely digital office, so the amount of paper that will be needed will be minimal.