Telegraph Ave at MacArthur BART Station

[Maureen Rhodin]

Investment Info:

Other buy & hold investment in Oakland.

Purchase price: $90,000
Cash invested: $50,000

Mixed use--2-story house and small storefront

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

My mother successfully rehabbed two 6 unit properties. She always advised that real estate is the best investment

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

Drove by the properties during the crash in 1986. Property was priced right at $90,000 and was through the real estate company my mom used on her two properties. Was a newbie and in college, so mom negotiated the deal. She worked for the city and new the area was slated for redevelopment

How did you finance this deal?

My husband's parents owned their home free and clear. We added our names to the deed, and took responsibility for the mortgage

How did you add value to the deal?

For residential unit--painted interior; lay carpet and flooring; re-did kitchen and installed new appliances; tiled bathroom and replaced fixtures; replaced heater and water heater; painted exterior.

For storefront--nothing

What was the outcome?

15-year mortgage--own free and clear since 2001. City investing in transit station across the street, constructing 3 multi-story housing units and a commercial walking village

Lessons learned? Challenges?

Mom was diagnosed with Alzheimer's and not able to teach me more about leveraging the property. Only now getting educated through BiggerPockets and ready to go! Great time for a commercial mortgage and have one in process now