5 Unit Commercial Mixed Use

[Bud Evans]

Investment Info:

Other commercial investment investment.

Purchase price: $350,000

This is a commercial mixed-use property on NJ State Rt 130. The property was under-rented, and the owner was using the commercial space. The property was purchased using an income valuation approach, and the rents were below market. We also excluded the owner's opinion that the commercial space was valued at $600 per month. We are increasing rents as leases expire, and all tenants are on board with $150 increases. The commercial space will be rehabbed into a residential space, and the remaining office will house my property management company. Once rehabbed, the 2/1 will rent out as the others at $1250 per month. The total Value added for the property is $150k at a 7.8 cap rate.

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

Wholesaler friend working to purchase 100 doors this year.

How did you finance this deal?

Hard money, then rehabbed and refinanced.

How did you add value to the deal?

Light reno to the building. light reno to the units. increased rents

What was the outcome?

We'll be rehabbing the final unit at the end of the year. REhabbing the unit will increase the value of the property substantially by over $100k

Lessons learned? Challenges?

Use whatever means possible to use OPM in the purchase of CMF

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I used my team to find and BRRRR the property, and MIRS Lending Group, LLC for the loans.