First Commercial Purchase
Investment Info:
Large multi-family (5+ units) buy & hold investment.
Purchase price: $640,000
Cash invested: $128,000
8-unit purchase. Turnkey with significantly below market rents. Only minor repairs and updates needed. Was able to increase gross annual rents by $24k within first 3 months.
What made you interested in investing in this type of deal?
As a cash flow investor, this was able to get me significantly closer to my monthly cash flow goal, which helped me reach the point where I could leave my W-2.
How did you find this deal and how did you negotiate it?
This was listed on the MLS. I moved quickly and waived inspection.
How did you finance this deal?
Commercial Mortgage with First National Bank
How did you add value to the deal?
Section 8 - Brought rents up to maximum, brought the other units up to market. Added 2nd set of coin-op laundry and upgrading units gradually over time.
What was the outcome?
Solid cash flowing low maintenance building.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Ben Sprague at First National Bank
