Small residential to commercial conversion

[Tyler McElroy]

Investment Info:

Office Space buy & hold investment.

Purchase price: $438,000
Cash invested: $40,000

Purchased small single family home in rapidly growing midtown district. Home was zoned for multi use so we have converted it into 3 separate office spaces. Cash flows nicely for the time being while waiting for a developer to buy us out as has happened in areas surrounding.

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

Good rental opportunity with resale values continuing to rise in the area.

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

Found through another agent at my brokerage

How did you finance this deal?

Traditional financing

How did you add value to the deal?

By changing it from a SFR to 3 separate offices we are able to generate much higher rents

Lessons learned? Challenges?

I opted out of taking my commission on the deal to lower the sales price, after close of escrow I wish I had the additional commission to put back into the property immediately as I was stretched pretty thin for a few months.