57 North Main St

[Adam Carter]

Investment Info:

Other buy & hold investment.

This is a mixed use building located in downtown Three Rivers, MI. It has two large apartments located in the upper levels that are run as Short Term Rentals. The main level has 5 rentals offices occupied by various business. The basement is also rented for storage space.

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

This offered a mix of residential and commercial space in one package. We were able to add value by furnishing the two upstairs apartments and running them as Short Term Rentals. The office space below has been a good, steady stream of income to help with expenses.

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

We were able to acquire this deal on a land contract. The previous owners lived in the apartments upstairs and we negotiated including their furniture in the sale.

How did you finance this deal?

My business partner and I were able to hedge other assets to produce cash for the down.

How did you add value to the deal?

We added value to the deal by turning the two apartments into Short Term Rentals.

What was the outcome?

We now have 4 offices rented out and both apartments running as efficient Short Term Rentals.

Lessons learned? Challenges?

The pandemic has created a unique environment for office spaces. People now have the ability to work from home. To overcome this, we essentially created smaller, private spaces with great internet and comfort for those that need to get out of the house to achieve a work life balance.