My journey of becoming financial independence by 35 years old
Happy Holidays, Everybody!
It’s been hectic for me! Trying to juggle a full time job and trying to figure out how much work need to be done to get the mixed-use property rented.
The retail spaces have been vacation since 2011. Rent in this strip is $25-$27/sqft. I had no idea what I meant when I was looking up how retail spaces listed. It means $25-$27/sqft/year. So, that’s about $2/sqft.
Considering that the space hasn’t been used since 2011, I listed at $12/sqft. Or $2000 for the retail space. And I’m trying to fix up the two upstairs apartment rented for $1000-$1350/mo. I’m not sure if I can get the $1350 in the winter months. If I’m a little more patience, I can get it rented out maybe in May for $1350, but everymonth that it’s vacant, that’s a loss in income.
So, with that, one of my co-worker is interested and willing to pay $1000/mo for 1 of the apartment.
I’ve also found 3 interested parties 2 for restaurants, and 1 for a salon. But I’m not sure how things are going to work out yet. I told them for the retail space, I’ll have to give them 2 months grace period.
I’m going to close on the property either tomorrow or Thursday. With taxes and fees it’d probably be in the $290k
1. plumbing and bathroom $2000
2. Wall and ceiling $3000
3. Painting $200
4. Flooring $4000
5. Lighting fixtures $200
6. New hot water heater
7. Hvac $4000 (I’m not sure what will be the damage as the place was last occupiedin the last few month). And the rest of the building hasn’t been used since 2011. I’m hoping it is that. If it’s more I’ll slot more money toward it.
$13400 to get this place started.
I’m not sure if my realtor say it to make me feel good or it’s a true story. But he told me that the other realtor told him the party that was see-sawing the contract with the owner. And I came in with the cash offer, no inspection, no repaire request that got things going for the owner.
I looked up the owner, he’s one of the biggest real estate investor in my city. He has $160M invested in properties in Florida, California, New York and my town. He has bout several buildings and renovated them and featured in the city newspaper. He’s about my age. Wow, imaging the type of hustling he has to do.
Nonetheless, he hadn’t been able to rent the space out since 2011. And I know why:
1. He delegated advertisement to his realtor, who I contacted 3 times, and refused to answer my call. What the heck!
2. She’d probably listed in the $30/sqft. To be fair, yes, restaurants there are paying $5000-6000 for the space smaller than this space, but the owner probably gave them some deal to get them started, and over a period of time. I wouldnt want to charge high rent to start, their business need to be successful first, before I can charge higher rent.
3. He has bigger fish to fry. And he’s willing to take a loss for the tax year. He bought it for $450K, selling it for $285k. He’s been posting a loss every single year for loss rent I’m sure. So, it’s probably come out to be even for him at least. The city accessing the property at $290, so I’m not too far off.
Here are some pictures of the inside. I only take pictures of what to be done. So, it’ll be a little … Ugly. But I’m excited of what it will become.