Hybrid Use

[Ezio Auditore]

My wife and I like the idea of living in a downtown environment.  The appeal of walking to businesses, and having free permanent parking would be very advantageous for us.  We have been considering looking for a dual use property, to rent out the downstairs as commercial real estate for restaurants/shops/etc. and use the upstairs for a primary residence.  

Is this a good idea in general, or is it just asking for trouble?  Are there positive/negative tax consequences to having a primary residence that doubles as a commercial rental?  Anything specifically unique I should watch out for while pursuing this?  Thanks.

[Brie Schmidt]

@Ezio Auditore -  The tax advantages are the same if it is a commercial rental or apartment rental.  The issue you will run into is that if the property is zoned commercial you may need a business loan and not a residential loan.  I am going to tag @Jonna Weber as she might have better insight into that market

I looked at those types of buildings and always got nervous because of the lack of demand for commercial space in some areas, but Jonna might have some insight