This is an investment, but it's also a charity. The property consists of two residential units and a large bonus space that is used by MANNAHOUSE, a local 501(c)3 that distributes food to those in need. This charity was started by the previous owner over 20 years ago. When she passed away, her kids wanted to sell it which would leave MANNAHOUSE with no place to operate the food pantry. I bought the property as an investment, but mostly as a charity to ensure MANNAHOUSE can continue serving the community.

The front house is currently a 5bed/2bath but I will convert it to a 4bed/3bath and update it. I anticipate it will rent for $1800 a month. The second house is a modern 3bed/2bath that rents for $1,200. It could rent for about 10% more but I'm keeping the current tenants and holding rent lower because they do a lot of work on the property.

MANNAHOUSE will not pay any rent. I estimate this will cost me $7,000+ in "losses" each year but it's a charity and my way of giving back to the community. The property will easily pay for itself, including maintenance and capex, but it's considered a loss from a business standpoint because I'm donating the space to MANNAHOUSE.

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

I had been praying for an opportunity to give back to the community. We already donate to a lot of charities and our church, but we wanted something bigger that my business could "sponsor" and show the community that we're more than just a real estate office.

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

One of my renters passed away and had an entire pickup load of canned goods to donate. When MANNAHOUSE came to pick up the items, they mentioned their property was possibly going to sell and they would need to find a new place to operate their food pantry. I saw it as an opportunity to purchase the property and ensure the MANNAHOUSE could continue operating.

How did you finance this deal?

Conventional loan with 20% down.

How did you add value to the deal?

I am updating the main house with new roof, new windows, flooring, and converting it to a 4bed/3bath for a more modern layout. I am adding a private bathroom for the MANNAHOUSE (they previously had to use the main house). I'm also updating the electrical for the many refrigerators and freezers.

What was the outcome?

I closed on it two days ago, so this is too early to say.

Lessons learned? Challenges?

None. I feel God has made this come together smoothly and anticipate it will do well for all parties concerned.

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

Seller was represented by an attorney and I represented myself.