All Forum Posts by: Chad King

Investment Info:

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

Purchase price: $430,000
Cash invested: $120,000

This is a 7 unit multi use commercial building. 3 store fronts with 4 apartment buildings above.

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

I liked the size of the deal plus there was poor management before. This is going to allow me to make good upgrades to the building while increasing rents.

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

I found it on zillow and my agent helped me negotiate the deal.

How did you finance this deal?

commercial loan from a local bank.

How did you add value to the deal?

I will be adding off street parking, upgrading the doors and trim and in the next few years add mini splits to the units to become more desirable and be able to maximize rents.

Lessons learned? Challenges?

I need to work on better systemizing the first month of the purchase with the tenants in place. Make it smoother for the tenants already inplace.

what are things to look for and things to avoid. Are there any kind of systems that you should have in place before thinking about commercial RE like this?

One thing I regret was not following my gut when I started buying real estate. My wife and I went after a 2 unit and didn't get it and instead of continuing looking to house hack or owner occupied investment property i did the traditional route and bought a house. Now if I just kept to my first plan I would have started my portfolio with the loan benefits of a primary residence loan. Nothing cooler then living in a house that is paid by others or better yet, you getting paid to live there. That is an avenue you might want to explore. If you want to talk more im open for conversation. I am currently on my 8th flip and I too am looking to start building a rental portfolio. 

Definitely leverage. Look at it this way. Instead of putting all your money into one or two properties you can use that money as multiple down payments while you leverage other people's money. Now you turn one or two properties into 5 or 10 or more.