Mixed use 24 Apts plus office building

[Paul Williams]

Investment Info:

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

Purchase price: $2,700,000
Cash invested: $540,000

Mixed use- 24 apartments and multi-tenant class A office building.

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

Cash flow, accelerated depreciation and great long term investment.

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

Email from commercial broker who introduced me to the owner. Didn't haggle too much as I thought it was a good deal already.

How did you finance this deal?

Community bank financing 80%LTC.

How did you add value to the deal?

increasing rents and getting one vacant office spot available to rent

What was the outcome?

So far, so good. Hit 7% cash flow year 1, on track to get 8.25 or so year 2.

Lessons learned? Challenges?

I wish I had gotten a longer term rate instead of opting for a lower rate for a shorter time frame.