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Updated over 1 year ago on . Most recent reply

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Alex Nein
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3
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Financing Options and Deal Analysis for Mixed Use

Alex Nein
Posted

I am currently getting out of my first deal as a flip hoping to net around $80,000.  We have found a Mixed-Use property for $200,000 on an off market deal.  Total SQFT of the property is $2178. The bottom floor is a barbershop in great condition and the residential property above is A 2 BR 1 BA.  Based on Fair Market Rent we believe we could get around $1100 for the residential space.  

However, we are trying to figure out what would be appropriate for the commercial space.  Where can I access information pertaining to commercial space rent/SqFt? 

Additionally, we are looking to put between 20-25% down. I am a loan officer myself and after checking guidelines on Conventional financing the property would not work Conventional. I have a DSCR investor but was curious if anyone else had ideas pertaining to the financing as the DSCR rates will be close to a 9% and throw the initial cash flow off a little. Any ideas for less money down or a product that allows for more seller concessions as DSCR is only 2%?

The property also has a detached garage - any idea on market rent for a garage/storage space. 

Thoughts?

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