Dover Gas Stations

One of the best aspects of living in a suburb of Boston is how residents can easily use them to return to a simpler way of life once the workday has ended. Dover, which is a suburb of Boston that is about 14 miles from the big city, is very heavily commuted to and from on the average workday, and while many commuters opt to use the MBTA to get to town, there is a sizeable amount of commuters that drive in. As a result, an investor that's looking for good cash flow and potentially faster capitalization rates might opt to consider purchasing or leasing a gas station in the area.

Click Here to Search

gas stations

Purchasing and Leasing Gas Stations

When you're considering a service station investment, there are a lot of positives. Not only can you capitalize on commuters going to and from work, but as you build out your property, you can also make money through expansions as well. When a person is considering a new service station investment, they will have the option to either lease or purchase the property outright. Which plan works best for you will depend on your on-hand capital, your credit, and the amount of work that you'd like to put in. In this section, let's take a look at the benefits of both options:

Leasing – If you don't have sterling credit, a million dollars on-hand, or investment partner, you might want to consider renting your service station. When you opt to rent from an owner, you will end up spending hundreds of thousands less on the service station, and typically, you'll have to put in less work for the management of your investment.

Leases are also fairly stable; in most cases, as a commercial lease, you can expect longer lease periods that will effectively lock in your rental rate for several years. Also, if a better opportunity comes up, you can always either wait for your lease to expire or break your lease and move on to the next investment.

Buying – One of the best aspects of purchasing your service station is the relative stability. While leasing can have fairly stable rents, once you lease expires, there's nothing stopping your landlord from raising your rent significantly. With a purchase, you will have a mortgage on the property that should remain fixed for the duration of your ownership.

Also, you'll have complete control of the property. While it will take work to maintain and repair your service station, in the end, you make all decisions, and once you pay off your loan, you can really capitalize on the investment.

Opportunities for Expansion

While you can make some money selling gas, you'll most likely need to supplement your earnings in some way if you want to be successful. One of the most popular ways to do this is to expand your business by adding on a garage, a car wash, and/or a convenience store. Having these extra add-ons can really earn you money, and if you're positioned right in a town like Dover, this can be the crux of your business model.

For example, owning a convenience store is a great way to capitalize on commuter traffic. For example, most commuters want coffee, snacks like danishes and pastries, or cigarettes as they head into work, so owning a convenience store makes your station something of a one-stop-shop for both gas and the necessities of their morning commute. Additionally, expansions like car washes and garages can be useful for town residents that already use your station for their fuel needs; these businesses provide a key service: car maintenance.

Locating Your Investment

Wondering where to start? Fortunately, Boston City Properties has listings of many of the available service stations throughout the Boston area and in many other areas of the state. Give us a call at 617-247-1933 today.

Click Here to Search

gas stations