Small Commercial turned residential... kinda.

[Shuff Mauldin]

Investment Info:

Other buy & hold investment.

Purchase price: $12,500
Cash invested: $10,000

small, clean, and located in a good school district

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

I was interested because the building was small, clean, and located in a good school district. It was also a simple, concrete block structure — easy to maintain — and felt like a safe bet for consistent rental demand. It was also a former office/retail space and could easily be converted back.

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

I found it while driving for dollars. The owner lived next door, and when I asked, “How much would you be happy to get for it?” she said $12,500. I agreed to her price on the spot — the negotiation was short and sweet.

How did you finance this deal?

cash

How did you add value to the deal?

We immediately invested $8,000 in cosmetic updates to make it rental-ready. Over the years, we’ve kept up with maintenance and invested about $10,000 in capital expenditures.

What was the outcome?

Purchase Price: $12,500 (cash)

Initial Rehab: $8,000

CapEx Since: $10,000

Total Invested: ~$30,500

Average Rent: $625/month

Vacancy Rate: 6%

Annual Expenses:

Taxes: $700

Insurance: $800

Septic servicing: $600

Tenant Covers: Utilities and yard

Net Cash Flow: Roughly $4,500–$5,000 per year after expenses

Current Value (2025): $70,000

Equity Created: ~$39,500 above total investment

Lessons learned? Challenges?

Lack of closet space can really limit your prospective tenant pool — even with a clean, updated property in a good area.