Rental Property on Main Street

[Kelly M.]

Investment Info:

Other commercial investment investment.

Purchase price: $185,000
Cash invested: $100,000

Three unit rental property (two apartments, one retail) on Main Street Ellicott City.
Complete four floor renovation. Converted from two rental units to three during renovation.
Currently renovating retail space, both apartments are rented.

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

I wanted something close to my home. I wanted rental income, and I wanted to renovate to add value.

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

I saw that the property was empty, and had been for a while. I contacted the owners directly. The negotiation was tough. It took over a year.

How did you finance this deal?

I was able to find private money, my own savings, and a commercial loan.

How did you add value to the deal?

I added a rental unit, and I did a complete renovation.

What was the outcome?

Excellent income and value added property.

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

I had an attorney look over the paperwork. Virginia Partners Bank financed the purchase price.