Doubling the income

[Bryan Beaune]

Investment Info:

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

Purchase price: $320,000
Cash invested: $108,000

Mixed use building with 4 apartments and 2 retail spaces. When I bought it the building was generating $2050 per month after 11 months its generating $5450 per month with a monthly profit of $3450. I still have 1 retail space that is vacant and am working to build that out into a useable space

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

The building was neglected and I knew I could raise the rents a lot after some minor rehab

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

I found the deal on the MLS it was listed at $350,000 but negotiated it down to $320,000 because it had sat on the market for a bit and the owner was trying to 1031 exchange it.

How did you finance this deal?

I used Patch Of Land to finance the deal after my first lender decided to back out last minute

How did you add value to the deal?

I have added value to the deal by rehabbing each apartment and working on the buildings common areas

What was the outcome?

Its now cash flowing nicely and I plan to cash out refi soon so I can buy my next property

Lessons learned? Challenges?

Do a rehab while tenants are living in the building was harder than expected and the inherited tenants weren't happy that the rent went up so all have moved out and I have been able to put my own tenants in place.

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

I am a realtor so I recommend myself if you are looking in to buy in Michigan