Example buyout brief
Could neighbors buy 99 Union Square?
In this practice scenario, neighbors buy a mixed-use building in Milford, New Hampshire, and keep renting out its storefronts and apartment. The biggest question is whether the actual rents could cover the cost of owning it.
The building
A 2025 listing advertised the three-unit building at $600,000 and described it as fully occupied. LoopNet says its listing is no longer being advertised. Current availability, asking price, and occupancy are unknown. Crexi listing · LoopNet listing
The listings also disagree on size. Crexi gives 3,226 square feet and LoopNet gives 2,593. A property card and the leases would help establish how much space the group would be buying and renting out.
What if?
A group of neighbors could own the property together and keep the two storefronts and upstairs apartment in use. Tenants would run their own businesses, and the group could hire a property manager and vote on major repairs and leasing priorities. The group would first need to see the existing leases and hear what tenants want.
The money
Start with the old asking price and pencil in the costs of taking over. All figures are in US dollars. The allowances are estimates for this example.
| Purchase at the old asking price | $600,000 |
|---|---|
| Closing costs | $15,000 |
| Initial repairs | $15,000 |
| Cash reserve at closing | $30,000 |
| Allowance for a modest refresh | $15,000 |
| Total before fundraising costs | $675,000 |
| Assumed bank loan | −$240,000 |
| Still to raise, before fundraising costs | $435,000 |
At an assumed 7.5% interest rate with payments spread over 25 years, a $240,000 loan would cost about $1,774 per month. A lender would have to confirm how much it would lend, on what terms, and when the loan would come due.
Multiplying the old $600,000 price by the listing’s 6.26% cap rate implies $37,560 a year after property operating expenses. That figure comes from the listing’s marketing numbers. The leases and operating statements would show what rent is actually collected and how vacancy, taxes, insurance, maintenance, and management affect it. Crexi listing
Using that implied income, subtract about $21,283 a year for the loan, $6,000 set aside each year for future repairs, and $4,000 for administering the ownership group. That leaves about $6,277 a year before owner taxes or investor payments. A drop of about $523 a month in net income would use up that cushion.
Fundraising
Under this scenario, a loan covers part of the purchase and neighbors would need to find at least $435,000 elsewhere. Ask a local lender what income and down payment it would require. The group could also ask whether the seller would finance part of the purchase and whether any local grant covers specific repairs.
If neighbors want to invest for a share of ownership or a return, ask an adviser how that would work and what it would cost. Include offering and platform fees in the amount to raise. Donations would come with a different set of questions about who receives the money and what happens if the purchase falls through.
Ownership and local rules
Ask a New Hampshire lawyer what kind of organization could hold title, take out the loan, and sign the leases. Decide how neighbors would vote, who could authorize repairs, and what happens when someone wants to leave. Ask what fundraising rules apply before collecting money and check with Milford before planning a change of use.
What to find out next
- Ask the seller or broker whether the property is available and request the leases, rent roll, operating statements, and repair history.
- Ask a local commercial lender how much it would lend against that income and what cash the group would need at closing.
- Talk with tenants and neighbors about what they want to keep or change and who would help organize or manage the building.