2,000 sq/ft commercial fit-up a complete success!

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I’m about 3 years late on writing this success story but better late than never.

Purchased a mixed-use property consisting of two occupied storefronts, an occupied 1,200 sq/ft 1 bedroom apartment and a 2,000 sq/ft unoccupied warehouse.

Starting out, the warehouse was my main concern. It wasn’t generating any money and had little potential to do so as it stood. The space was gutted. It consisted of an un-insulated roof, roof rafters, exposed 12’ block masonry walls, concrete floor, and centralized load bearing pillars. The building was basically an empty, masonry 2,000 sq/ft rectangle. This made a potential rehab a bit cheaper and easier. The fact that there wasn’t a need to gut or demo anything freed me up from potential lead or asbestos mitigation.

I started out by contacting my commercial RE agent to put the space up for rent. We both agreed the best bet would be to push the unit in its current condition, hoping to gain a tenant who would invest their own money into it for a lower monthly rent. While on the other hand, in the event that a renter was looking to spend top dollar per month and sign a favorable lease we would include an option for a “fit-up” paid for and contracted by me.

About a month and a half later a solid possible tenant came along. They loved the space and location but required the second option, a full remodel by me. After calculating the cost of fit up versus the money they were willing to spend on rent/better lease agreement it made sense to go ahead with the build. It was going to pay for itself within 3 years, not to mention adding value to my otherwise worthless unit.

After unsuccessfully taping into equity from another building I own, I was fortunate enough to use two private money investors and contractor financing to cover the cost of material, labor, and permits.

I opted to frame the interior and run electrical/ lighting myself. The HVAC system, spray foam insulation, and sheetrock were outsourced to contractors, two of whom financed the work.

To make a long story short, the build took about 2 months to complete. The once empty, worthless space now pays for my entire annual tax bill and ¾ of my mortgage.

It was a 100% success and some of the best times I’ve had!

[Account Closed]

@Douglas Larson, 

Apologize for not responding sooner,

My hard drive containing most of the photos crashed awhile ago. Here are a few screen shots I captured from video. I'll post the financials soon.