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Updated about 3 years ago on . Most recent reply

User Stats

31
Posts
14
Votes
Mitch Hartford
  • Investor
  • Rochester, NH
14
Votes |
31
Posts

Mixed use/value add garage and SF

Mitch Hartford
  • Investor
  • Rochester, NH
Posted

Investment Info:

Industrial buy & hold investment in Rochester.

Purchase price: $215,000
Cash invested: $100,000

Value add mixed use Commercial/Residential. This has been a great performer. There is a single family home on the same .86 acre lot as a commercial garage. We purchased this home with owner financing, 5 year balloon. The house was a live in remodel that is 98% done and the garage has had the same tenant for ten years.

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

I had little cash when we purchased but had plenty of time to do the remodel myself. I was coming off a bankruptcy from bad real estate decisions a few years earlier and really wanted to improve my net worth somehow.

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

Friend of a friend. 4 brothers inherited this property and didn’t want it. It was overpriced and run down. The owner finance without interest helped ease that.

How did you finance this deal?

Owner finance deal. $3000 down, $1000 a month for 5 years, all straight to the principle. Then we refinanced to a commercial loan.

How did you add value to the deal?

Garage needed a bathroom, septic system and general repair. It got new siding as well. The house got everything new but a foundation and framing.

What was the outcome?

Sitting pretty on some equity and income.

Lessons learned? Challenges?

Some people will give great finance terms.

  • Mitch Hartford
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