3 unit commercial lending

[Giselle Delgado]

Hello ! Sorry for my newbie question. I recently purchase a 3 unit rental property I use a heloc from my first duplex to do so. My question is I do have equity on this new 3 unit and I want to get a heloc for a new investment. I'm having trouble finding a lender because the first floor of this 3 unit is a commercial. Help !

[Jonathan Bombaci]

Mixed use is tough right now. Is the first floor occupied by a tenant? If so what type of business is it?

If it is occupied then your best bet is try local credit unions. The more local the better. 

If the first floor is vacant then you either need to find a tenant for it and then bring it to a credit union or talk to the city and see if you can convert the unit to residential. From my experience even if the commercial unit is a awful layout on a very busy road, and the city requires you to sprinkler the whole building, the cost benefit analysis still works out. 

Best of luck. Mixed use has some complications right now but they can be great value add plays that many people overlook. 

Best,

Jon