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Commercial Real Estate Investing

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Luke Easley
  • Montgomery, AL
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How do I buy a large commercial building?

Luke Easley
  • Montgomery, AL
Posted Apr 16 2021, 02:52

Background:

I have lived in my personal residence for 3 years. I house hacked and rented 2 spare rooms on Airbnb that paid for the mortgage, utilities and more each month. I have done renovations and and sold the house and will have 60k cash after closing next week. Some of that will go to pay off some debt and the rest I want to invest in a commercial building.

I have several years experience owning a short term rental business with 10 apartments that I signed a multi year lease on. This has given me a great deal of business experience in the hospitality industry and real estate market.

I now want to buy an actual hotel or mixed used building.

The hotel is 30 rooms, in a great location with new hotels being built around, it needs a lot of work and could great increase revenues with nicer rooms and leaner operations. Building Cost is estimated around $700-$800k. I know with renovations it could be bringing in close to $1m a year in gross revenue.

There's also a 5 year old mixed use building. 48 apartments upper floors and 5 retail spaces in the bottom. Excellent location, but half of retail space has been vacant for years. I could Airbnb one floor of apartments to significantly increase NOI. Building cost is about $3m. Gross income is about $600K.

How can I take my 60k from my house and buy one do these buildings? I’m ready to hustle and make this happen!

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