Looking for a loan on a zoned commercial with 2 residences.

Looking for a loan on a zoned commercial with 2 residences.

Real Estate Consultant · Brookings, OR · Member since 2018 · 43 posts · 20 votes
Are lenders pulling back or am I just not shopping the right ones?

I have a line on a deal for a property that I believe is undervalued and has great future potential for improvement.  It follows the first 3 rules of real estate, is zoned "light commercial" which would include multifamily, the direction I want to take it.

It has a well established restaurant and 2 residences.  My plan is to move in to one while I work on other parcels attached, then develop the 2 residential lots for multifamily and/or STRs.

This has stumped several lenders who have told me "we don't do commercial, mixed use, etc"

I am at the point where I may need to pass because I can't seem to find a lender able to work on it. 

As with anything, numbers don't lie.  The property stops making sense at around an 8% mortgage.
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  • Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    2y

    What financing are you trying for? It'll be more expensive than normal loans because it is mixed use. 

  • Real Estate Consultant · Brookings, OR · Member since 2018 · 43 posts · 20 votes
    2y

    It's likely going to have to be a DSCR or other NonQM. I am open to suggestions, though.

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