Residential Condo to Commercial office building

[Jack Martin]

Investment Info:

buy & hold investment in Cordova.

Purchase price: $485,000
Cash invested: $200,000

Two story office building - 4 suites- Cordova is a high income area in a suburb of Memphis, Tennessee. Traded my cash weak condo into a commercial building in an upscale suburb of Memphis. Better cash flow, new depreciation schedule.

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

I was fed up with the weak cash flows from California rentals. I hit a wall on appreciation so the timing was good.

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

Found the property after an exhaustive search in Loopnet and searching demographics throughout the country. Torn between NE Ohio and Tennessee, I hate the cold, and more people are moving out of Ohio than moving in. After visiting Cordova the decision was easy. I have a good agent who knows the area and helped put the deal together.

How did you finance this deal?

I am a lender so I have my own sources.

What was the outcome?

I couldn't be happier with my new investment.

Lessons learned? Challenges?

People move slower in the south, so I have to be more patient but I have found the people to be exceptionally nice and thoughtful.

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

I have two really good agents, one for sales and one for leasing. I also have an excellent handyman who is reasonable and trustworthy. I am looking for more investments in the area.