Commercial investment in Cleveland.
Purchase price: $123,000
Cash invested: $30,000
This is a mixed use property consisting of two storefronts, four apartments and one freestanding garage. We are currently renovating the building and once stabilized, intend to do a cash out refinance, leaving about $30k in the deal. After all expenses and debt service, we expect to have about $1,100.00 monthly cash flow.
What made you interested in investing in this type of deal?
The building met our criteria. We look for distressed B- to C- properties at a discount. This property was definitely distressed! Only two of seven units were rented, and the building needed major attention.
How did you find this deal and how did you negotiate it?
Off market, through a wholesaler.
How did you finance this deal?
Paid cash, currently refinancing.
How did you add value to the deal?
We are renovating the building, then stabilizing it (getting it leased up).
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