2nd Commercial Investment

[Bethany Turon]

Investment Info:

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

Purchase price: $420,000
Cash invested: $84,000

My 2nd commercial investment, I love the townhouse style of most of these apartments. Upon closing I found 2 units vacant (of 6), and had a 3rd move out the following month. Fully stabilized I'm increasing the gross annual rent roll by $30,000. Rehab cost will be around $13k for the 3 units. Lots of fun doing this one, but also very busy!! The first tenant helped us design and complete the rehab, moving in right at the tail end, so only have WIP pics.

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

This was the last purchase needed to achieve my monthly cash flow goal!!!

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

Found on MLS. Slow and steady negotiation. A little bit of betting that the competition wasn't there for this building.

How did you finance this deal?

Commercial Mortgage through First National Bank. My 401k owns the majority of this building through a tax loophole known as ROBS.

How did you add value to the deal?

Rehabbed 3 units so far, taking the units to market rent.

What was the outcome?

I was able to give my notice to my W-2!

Lessons learned? Challenges?

Very stressful to have 3 rehabs going at once unexpectedly!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tony Poulin at Meservier
Ben Sprague at First National Bank