9 condos purchased as a portfolio with commercial mortgage

[Sean Morrisey]

Investment Info:

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

Purchase price: $540,000
Cash invested: $108,000

Purchased a portfolio of nine condos using a commercial mortgage, from US Bank, for 20% downpayment. All are rented through 2018.

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

All cash-flowing rentals that I purchased and earned a fantastic cash on cash return.

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

Loopnet through a client. Client decided not to purchase, so, I stepped in and bought the portfolio.

How did you finance this deal?

US Bank commercial mortgage with 20% downpayment.

How did you add value to the deal?

Cosmetic rehabs, but, mostly just increasing rents to what the market would demand.

What was the outcome?

Great cashflowing rentals. Currently, trying to pull out $100K equity to buy another building.