Chicago investing - Retail space in multifamily - Yes or No?

[Swetha Solipuram]

Hi,

I am looking for my 3rd deal. While looking for multi family, I am coming across a few buildings with retail space along with residential units. I am looking for someone to give me post covid perspective on risk that comes with a retail space. 

Swetha

[Matthew Crivelli]

I can give you some guidance on the lending end of things. With mixed use properties you will need to have a full commercial narrative report preformed, the leverage will be lower 70% - 75% max, and it could take 45 - 60 days to actually close. This is because mixed use is always considered a commercial property. You will also run into minimum purchase price requirements. Anywhere from 250k to 500k minimum PP.