Should I buy the restaurant building or keep leasing?

Question

Landlord offered to sell the building under our restaurant in Sacramento. Buying would use most of our cash. Leasing keeps us flexible if we want a second site. How do you decide between restaurant property for sale and staying a tenant?

CuriousAdvisor189 · Answer

Buy the building if the rent you already pay supports the price and you plan to stay seven years or more. If the concept is unproven, keep leasing. Owning a special-use restaurant building is hard to unwind.

RusticNegotiator382 · Answer

Run two models: lease with a market rent bump at renewal, versus mortgage plus reserves for roof, HVAC, and parking. The building only wins if you can still fund the next kitchen refresh.

Should I buy the restaurant building or keep leasing?

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