Househacking commercial real estate

[Jonathan Bombaci]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Leominster.

Purchase price: $233,000
Cash invested: $46,600

Purchased this 5 unit building, 3 residential 1bed units, and 2 commercial units currently being used by a tarot card reader as part of a commercial package. It appraised at $300,000 but many tenants did not allow the appraiser in, we think it’s conservatively worth $350,000 which means we purchase it at 67% of its market value. We’re in the process of vacating the commercial units do we can put a real estate office/PM office in the building and have the 3 residential units pay for it.

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

Can have real estate office paid fir by residential units, essentially workspace for free!

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

Landlord was retiring and liquidating portfolio

How did you finance this deal?

Commercial lender JDCU

How did you add value to the deal?

Renovating commercial space

What was the outcome?

Work in progress

Lessons learned? Challenges?

Nothing yet but I’m sure there will be