A property owner can't make money leasing the building traditionally, so instead they'll operate it as a co-working space with 20 small offices at $2,000 each per month. That rental income covers the mortgage, with anything extra as profit. The owner absorbs taxes and insurance as operating costs rather than passing them to tenants.
Chapters
That should answer Tina's question as to where's the ROI. There is none unless you do something fancy. Right. And so owner operators, this is an owner operator space. This isn't something we buy and then try to find a tenant for, because at the price that it's at, it's not worth it. So, but with Katya doing what she's wanting to do there, the club itself really does add to the value because again, we're going to be leasing out these 10 offices to people for $2,500 a month. That right there, those are little cubicles and we'll actually put 20 in there instead of 10. And we'll actually make them like $2,000 a month instead of $2,500. And that's going to bring us all the money we need to pay the, pay the mortgage. Everything else after that is gravy.
How do you anticipate— did I miss it too? Taxes and insurance on this, is that also going to be included into the tenant?
And again, like when we would be— if we were leasing it out to somebody else, that would be tied in, into the triple net. They're going to have a per square foot price, and then they've got to pay the taxes, insurance, and maintenance. Right. So that's a triple net we don't even factor. But if we're going to be the operators and the tenants at that point, that comes out as part of our operating expenses. So based on just trying to make sure we got the mortgage covered, we would need to lease out our co— our co-office spaces for $20 grand— $20— or I'm sorry, $2,000 a month. To people that just need the office space and want to do it in a cool building. They don't need it full time.
