Investment Info:
Other buy & hold investment.
Purchase price: $109,000
Cash invested: $25,000
Downstairs was commercial and upstairs second floor and third was vacant. I did a land contract for 11k down with principal only payments for $500 per month for 4 years. Day of closing met with commercial tenant downstairs and found out what was making them not pay rent. They wanted repairs done. Did the repairs rented out the other side of first floor commercial space and doubled income. From there turned second and third floor into a youth lounge that brings in $2,500 a week.
What made you interested in investing in this type of deal?
Owner willing to do creative financing and allow me to put down little money.
How did you find this deal and how did you negotiate it?
Creative financing and found it through a realtor that informed me it was for sale when I was really suppose to look at just one building she told me about 3 because she saw I was a serious buyer and mover.
How did you finance this deal?
Credit Card
How did you add value to the deal?
Made improvements that affected the outside and then attacked the walls with new paint, new floors, LED lighting, and nice bathrooms.
What was the outcome?
Tenant that wasn't paying started to pay $900 per month first month in giving me a $400 cash flow and second commercial tenant just added to the bottom line.
Lessons learned? Challenges?
Always have credit cards to pay for repairs because by the time you get the points from the cards and use the points to fund more repairs you actually spend less than you would if you use your money in the bank