Chris Chatfield Commercial Deal

 

Chris Chatfield Commercial Deal

Bellalane Properties in Point Pleasant, WV
Chris Chatfield with Donna Chatfield (wife)

We ran across a commercial property on the MLS in Donna’s hometown in WV in 2019. The property consists of a 20 unit apartment building, a 4 unit apartment building, a small 1000 sf store, a house and a vacant lot. This particular property had been on the MLS for years and was in foreclosure. It was listed for $399,000.00. We scheduled an appointment with a realtor to see the property. There were only 10 apartments occupied with no consistent rent roll. Not one tenant paid the full amount for rent and some not at all. There had also been no repairs or renovations for 40 years. Several investors had looked in to renovating this property but none of them would take on the challenge. Donna contacted a locally owned bank and spoke with a personal banker. He advised us on construction loans and how they would benefit us if we decided to take on this project. With a construction loan there is no out of pocket except for monthly interest payments. Once we were pre-approved we submitted an offer of $160,000.00. Within a few hours the bank sent us a counter offer of $170,000.00. We then met in the middle and sealed the deal at $165,000.00. Once we closed on the property, work would begin. This apartment complex had been a major eyesore for the neighborhood and an area for constant drug traffic. The previous owner passed away ten years before and his wife could no longer handle the repairs or the tenants. The rent roll was not consistent, so the property went into foreclosure. This complex was a major headache for the police and the neighbors for years. When the community heard we had purchased the property, they were relieved and thrilled at the same time. We knew this would be a big undertaking but also knew the community needed rentals desperately. This particular complex was located in a lower income area and was needed desperately. Each and every apartment had to be demoed and fully renovated. All were completely painted on the interior. New flooring, kitchen cabinets, toilets, bath vanities, new plumbing and new heating systems were installed. We also updated the exterior with all new doors, painted the entire building and added a new roof. This renovation was completed in less a year. The apartments are currently all occupied. Being a lower income community, the rent rate is comparable in the area. We have lists of perspective tenants for openings almost always. This purchase has been the best investment and life changing for us. After payment, insurance and taxes, our profit each year will be approximately $160,000.00.

Commercial Details

Property City: Point Pleasant
Purchase Price: $165,000
Repair Costs $100,000

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Case Study

How did the FortuneBuilders team and resources help you to accomplish this deal?

We have learned so much since the our first project! 1. Research is key. The auditors website, tax records, facebook and Instagram has been so beneficial for information on vacant homes. 2. Don’t be afraid to contact other fortune builder members for help and strategies. With the complex, we contacted Fortune Builder member Lonnie Freeman. We were introduced to Lonnie early on and we knew he owned several apartment complexes. His expertise played an important part in deciding on upgrades with our Class B to C property.