Mixed use multifamily

[Account Closed]

I've been keeping a pulse on this mixed use property (2 units) that has been on the market for several months. It is located in a very active developing city. The price is under market. The cash-on-cash return is about 11%. I'm curious do investor avoid property that is zoned for commercial purposely?

[James Wise]

Originally posted by @Account Closed:

I've been keeping a pulse on this mixed use property (2 units) that has been on the market for several months. It is located in a very active developing city. The price is under market. The cash-on-cash return is about 11%. I'm curious do investor avoid property that is zoned for commercial purposely?

 Commercial has it pro's & con's. The pro is that when you do get a tenant they stay much longer and you generally don't have to do any repairs. Outside of that self help evictions are legal in most areas. The con is that the vacancy period in between tenants is much longer than with a residential property.