New multifamily acquisition in A-class suburb of Cleveland

[Steven Cathcart]

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $405,000
Cash invested: $12,000

Purchased a brick six-unit in the A-grade Cleveland suburb of Rocky River. The deal was found off market through a local connection. Purchase price was $405,000, plus a fee paid out at closing to the individual who sourced the deal. Purchased using private money lender; we will be refinancing with a traditional commercial lender.
The building contains 4 two-bedroom units and 2 one-bedroom. Units are in great shape, many tenants are long term. Coin-op laundry in the basement, off street parking. We pay water & sewer, tenants pay gas and electric (individual furnaces).
This property is in an A-class area. Strong rental pool, good tenants, and the value of the property should steadily increase.

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

The property is located in one of the best suburbs on Cleveland's west side. Building is in great shape and tenant pool in that area is favorable.

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

This was an off-market transaction sourced by another local investor who collected a fee at closing.

How did you finance this deal?

Private money for the purchase. Refinancing to traditional commercial loan.