Westville NJ Mix-Use Property

[Mike Bonadies]

Investment Info:

Other buy & hold investment in Westville.

Purchase price: $110,000
Cash invested: $8,750

The Deal: A mix use quad-plex. 1/1 and 2/1 residential units on the top with two merged commercial units on the bottom. We picked up this property in a portfolio deal that included three other multi-family properties. It was an estate sale and the current owners inherited the property and did no want to be landlords.

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

What Made It Interesting: We are working with the town to get a business tenant for the commercial unit that is deemed "desirable" for the town. In the process the town has offered us a 5 year tax-abatement program greatly increasing our initial cashflow.

How did you finance this deal?

The Financials: We used hard money to purchase the entire portfolio including this property. 10% came out of pocket for the entire portfolio and the hard money lender covered the rest. We are refi-ing the properties as portfolio too which gives us some unique rate benefits. The ARV is comfortably 215k so after rehab we ended up being in the property for almost zero dollars.