6 Unit Commercial Property

[Brandon Williams]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $30,000

This 6 unit building was an off market deal - The owner was looking to sell the building for $30,000 - at the time I had no clue what I was doing but I felt like it made sense to buy the building anyway; I rented the building out over the years and eventually got a bank loan to rehab 2 of the units and upgrade the others. A bank gave me $200,000 and I was able to get ALL of the units rented and eventually got the market rate of the building to around $550,000.

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

I thought it made perfect sense to get a 6 unit property for the price. The owner was basically giving it away.

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

Word of mouth

How did you finance this deal?

cash

How did you add value to the deal?

I rehabbed 2 of the units, upgraded the layouts of the others where it could be done. The master bedrooms have en suite master baths with walk in closets. There are very few, if any units in the area that have these types of amenities.

What was the outcome?

I now have the building listed for sale but I will have 10x'ed my initial investment

Lessons learned? Challenges?

I will say this property has served as a launchpad for me and my business. I learned how to property manage effectively, and how to turn a commercial property into profitable property. The main lesson in all of this for me is to learn how to turn over investments like this much quicker.