Edmonds Bowl - Great Location Great Rents

[Liam Naughton]

Investment Info:

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

Purchase price: $2,805,000
Cash invested: $1,000,000

Multifamily building, 2 commercial spaces, 9 residential 1 bed 1 bath units right in the middle of the Edmonds Bowl.
2 of the residential units are operated as STR's which bring in an additional $100/door/month above market rents.

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

My mother always dreamed of owning a multifamily property and she chose this to be her first venture into multifamily and commercial space.

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

The deal was on the market though it went pending twice before we got it under control. The other buyers couldn't line up financing. Negotiations happened after the inspection window to bring the price down.

How did you finance this deal?

Commercial financing with People's Bank in Edmonds.

How did you add value to the deal?

We've now rehabbed 3 of the residential units as well as one of the commercial units.
A new roof was put on this summer of 2022.

What was the outcome?

The property is fully occupied and easy to fill when we have vacancies. It now cashflows and puts money away for cap ex.

Lessons learned? Challenges?

Picking a good location will make things easier for you down the road as it's easier to get things rented and easier to get tenants who will stay. We've had no issue finding new tenants when one leaves and have had no resistance raising rents to keep up with the market.

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

People's Bank for commercial financing.
My mentor Lori for agency representation.