Updated about 7 years ago on . Most recent reply
North Spokane Multi Family
Investment Info:
Large multi-family (5+ units) commercial investment investment in Spokane.
Purchase price: $195,000
Cash invested: $70,000
Saw this property pop up on the MLS and quickly submitted an offer after seeing the location so close to Whitworth University. We found a tenant for the house, allowing us to cover the monthly cost of holding the project, while we submit a comprehensive zoning change with the county, in order to allow the construction of 16 units.
What made you interested in investing in this type of deal?
We love the opportunity to expand our porfolio, and the location to Whitworth University was ideal for a long term hold.
How did you find this deal and how did you negotiate it?
I found the deal on the MLS, and sent it to a few clients. With the risk of the zoning change, it wasn't an easy project for most. I decided to proceed and submitted an offer over asking price, with financing, yet waiving the formal financing contingency. I beat out a cash offer and secured the property.
How did you finance this deal?
I used a conventional lender, since I know the zoning change along could take 12 months.
How did you add value to the deal?
The zoning change should take about 8-12 months.
What was the outcome?
Secured the property. Have a tenant in place currently covering all the expenses including the mortgage. Processing the application with the county to change the lot for Low Density Residential to High Density Residential, with the plan to build 16 units.
Lessons learned? Challenges?
Awesome to beat out a cash offer by waiving the financing contingency. Looking forward to working through the process of a zoning change, and the demolition of the existing home, for the next phase.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I represented myself :)
