Commercial Investment Apartment Building on the Westside of Cleveland

[Jacob Gable]

Investment Info:

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

Purchase price: $535,000
Cash invested: $133,750

Long term commercial investment in Rocky River, Ohio

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

We were interested in rolling money from a sale of a triplex into a larger property.

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

We found this deal reviewing Loopnet and saw it had been sitting on the market. We offered 30K under asking and got it under contract, after the inspection we were able to renegotiate another 10K off of the property due to repairs needed.

How did you finance this deal?

We used commercial financing of a 10 year not with a 20 year amortization schedule.

How did you add value to the deal?

We added value by decreasing the offer after the inspection and then after closing we were slowly able to get rents to market rent. To increase cash flow. We also were able to get the property taxes reduced by filing a complaint with the county.

What was the outcome?

It took about a year and a half to stabilize the property but the property is stabilized and cash flowing.

Lessons learned? Challenges?

One major lesson learned is that commercial financing is no where close to residential financing and that you need to give yourself a decent amount of time to line things up.