All Forum Posts by: Aidan Cullinan

My partners and I recently acquired a mixed-use property, and we’re facing a challenge with one of our commercial tenants. This tenant operates a resale business and is currently renting a single unit on the ground floor. However, the previous landlord permitted them to take over an additional 3,000 square feet on the second floor, which is now filled with inventory and unusable for other purposes.

While this tenant has been reliable and has a long-standing relationship with the property, their occupancy of this extra space is limiting our ability to maximize rental revenue. We’re eager to reconfigure that area into multiple units to enhance income potential.

What strategies can we implement to address this situation effectively? We want to maintain a good relationship with the tenant while also reclaiming the space for our business goals. Your insights would be greatly appreciated!

I found a garage for sale, on the MLS, in an appreciating part of town. The garage is located behind a townhouse, and looks to be a divided parcel. It has two separate entrances with an extra 100 sqft of storage behind each garage. This is in PA, where it is cold and rainy often. That being said, I know that there would be demand for garage space, especially from car enthusiasts. My idea is that I purchase this garage and rent it out through Neighbor, or Facebook marketplace. Assuming I can get a loan, or seller finance this, it would cost me about $400 a month. After running the numbers, I would cash flow about $200 a month, based on no vacancies. This puts me at a cap rate of ~4.3%, and a CoC return of ~22%.

While these numbers look good, I am also considering the risk that I get stuck with the property because It would be hard to sell it. I am also unsure if it is even possible to get a loan for just a garage. Additionally, I don't know what the demand looks like for a garage in my area. 

I have not seen anyone cover this, so I am hopeful that someone may have experience with this asset class. Thanks!

Looking for a wholesale contract between the Philadelphia and Allentown area. I prefer more suburban areas, as opposed to urban areas. I have about 250k-300k to work with.