Investing in mixed use property

[Andrew Rosenthal]

Good Morning All,

I am an owner of a sneaker and clothing business located in Staten Island, New York. I also recently became a licensed real estate salesperson and just closed on my first home in August of 2022 after renting for close to 3 years.

Since 5/2019 I have been paying $2900 per month for commercial rent. My current lease is a triple net and my store is conveniently located in a strip mall. My business has paid $116,000 in commercial rent since it’s inception.

My landlord notified me last month a day before the rent was due his property taxes had increased and advised me he would be increasing my rent from $2900 to $3200. After some back and forth we agreed upon $3000.

I have been considering purchasing a mixed use building for some time now as both an investment vehicle and to build equity. 

My plan is to take out identify a suitable mixed use building on the north shore of Staten Island as I believe this area is on the up and up and there is a lot of upside in the property value increasing.

I’m looking for a 3 Story building with a commercial unit on the ground level (to house my store) and residential units on the 2nd and 3rd level to rent out to pay towards the mortgage note.

I am considering mixed use as I spoke with a few people regarding this and they advised me since me and my partner are not married I can purse a FHA first time Homebuyer loan in her name and put 3-5% down. If I go the commercial route I would have to put 25-30 percent down which I can do however I would prefer to put the least down and also diversify my investment.

Any and all feedback is appreciated.

Best Regards,

Andrew