All Forum Posts by: Kyle Neff

Looking at buying a commercially zoned building in the Montgomery area. It is currently FSBO and our vision/plan is to occupy 51% of the space ourselves (small business) and rent out a portion of the building. We are trying to get creative with financing as our family cannot really float the monthly payment we were quoted for 6+ months while we renovate the property and prepare to open the business. It is in no way ready to open as another business, the building needs a lot of work. Has anyone had success with renting back from the owner while renovating a building with an agreement to purchase the property at a later date? Is there an interest only loan that any commercial lenders have which would make the monthly payment lower for 6 months or so? Open to any and all ideas.

We recently received a quote for a commercial property buy. I am looking to gather a few more quotes from local lenders. There are two tricky areas with this building and the buy:

1) It is owned by the company operating out of it, so it is not leased nor has it been for decades. The owner is selling FSBO and told us an asking price of $500K. Unfortunately, a broker got wind of the sale and now moving forward is hinging on what value this broker holds in front of them. We have first right of refusal, and they don't want it on the market, but we'll likely be out of reach at anything over $500K. Anyone dealt with this and were you able to get the seller to commit to their original asking price?

2) The plan for the building is to house a new small business that my family and some friends/business partners are working through. We will have a business plan and legal pieces in hand soon, and are very confident that the location and the space of this building are perfect. However, we'd be taking on a commercial loan before any revenue comes in the door. We estimate at min 6 months before being open due to renovations and permitting. Has anyone seen an 'interest only' commercial loan? Does anyone have any creative ideas on how to structure the financing so that we aren't floating a huge monthly payment before the business even opens? 

Thank you!

@Dj Hume nice work! Great to see you improving communities in the Cincinnati area!

@Remington Lyman would love to connect sometime soon. Been investing only in Cincy so far, but would like to discuss the areas in Columbus you think have potential. Shoot me a note and hoping we can find some time to discuss. Thanks. 

@Chris Young glad to connect. Shoot me a note and we can set some time to talk.

@Joseph Cornwell my strategy sounds similar in terms of property size, mainly duplexes and quads, but have only invested in CUF/Clifton areas around UC. Looking to expand into commercial multifamily (100-150 units) both here and in Columbus. 

@Tony Zhang - great question. I would close the property in your personal name and then transfer into the LLC after the transaction is completed. Just make sure this is ok with the lender first, as some call the loan due upon transfer or sale. Good luck!

@Joseph Cornwell sorry for my severely delayed response, and really appreciate your thorough response. We underwrote at a 6 cap based on support from colliers and CoStar. I think your analysis is spot on. Which areas do you focus on in Cincy?

Hi BP Community,

Anyone in the Cincinnati, OH market multifamily space that can comment on Cap Rates you are seeing (purchase and exit) in the 100-150 unit range? Specifically looking in the NE Cincinnati sub-market. Thanks!

@James Morrissey

James - when will you be moving? We live in Cincy and love it here. Which areas are you targeting?