Two unit Mixed Use Building

2 Replies

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $400,000
Cash invested: $100,000

This is a two unit mixed use property. One large commercial unit we use for a business I own. Also has a 3 br 1 ba home attached that we rent.

What made you interested in investing in this type of deal?

We use the commercial unit for a landscaping company I own and rent out a three bedroom home that is attached.

How did you find this deal and how did you negotiate it?

This building had been for sale at a previous time, but was currently not on the market. I made a few calls and got the current owneron the phone. He was still interested in selling, we met, inspected the place and decided to purchase it.

How did you finance this deal?

Owner Financed with 25% down on a 7 year term.

How did you add value to the deal?

It is a building that was for a buyer with particular needs. We had the need so it was a good fit.

What was the outcome?

Still own it and occupy it.

Lessons learned? Challenges?

Off the market doesn't mean not for sale.

Love your tenacity and creativity locking this down. I like odd or not normal properties and odd or nn conventional ways to purchase also.

Is the 7 year term straight am or a ballon deadline?  Does the rent on the 3 bed cover the majority of the expenses? 

Business hacking. Love it!  Congrats, Adam!

@Steve Vaughan

Thanks Steve I appreciate the kind words. The seven year term is straight am, since it is a hefty payment the 3br apt does not cover all expenses. However if we were not occupying the commercial space we would cover all expenses.

Thanks again...and Goodluck!

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