It was cash flowing, but just barely. Around 1k a month, which I saved in the property’s own bank account (it’s an LLC, always put an investment property in an LLC). I was a little worried that when I did get new tenants to fill the vacancies, they would want tenant improvements (TI), which I wouldn’t have the cash to pay for. But like I mentioned, everything is negotiable.

I found this particular property on LoopNet, which is kind of like Zillow but for commercial real estate. However in the CRE realm most deals are made off-market, which means by the time a property gets advertised on LoopNet, it’s already been passed over by those in the know. I did luck out with this one, every once in a while you’ll find a good deal on there. But it’s a great way to see properties in your market at a glance. I would highly recommend building relationships with as many people as you can in the industry. Befriend property brokers, lenders, insurance brokers, etc. I’m a total introvert, so this was difficult for me, but I try. This is how you find those off-market deals. You want to be at the top of their list (or as high as you can get) when they hear about a property that might be for sale. I have also just driven around neighborhoods looking for apartment buildings that looked like they weren’t being taken care of. I look up the owner on the county assessors website and cold call them. Haven’t had success with this approach yet, but it’s just a matter of time. This is the way to really find those good deals. You want to figure out how to solve the owner’s problem. Maybe they’re old and not interested in owning property anymore. Maybe they moved out of state and are trying to manage it long distance. Make it an easy decision for them to sell you their property. Good luck!