Buying my first Fourplex - Advice Advice Advice please!!

[Fas McO'nen]

Hi BP,

I just got my first fourplex under contract. I just found out that the property is zoned as R-6 (commercial) but by grandfathering rule, it is currently used as a multi-family residential. My lender said that they don't do commercial loans. She stated that they would have to appraise the property and if the appraiser states the "best use" of the property is commercial then they can't do the loan.

The area has a lot of multi-families that are all zoned as R-6.

What advice do you have? I don't think requesting to get it zoned to R-4 (residential multi-family) is an option but my question is, what are the requirements to getting approved for a commerical loan? I understand the interest rate will be higher but even at 6.5% interest the cashflow and ROI is pretty good. I want this property really bad, but not sure of the best route to take. Any advice is greatly appreciated!

Thanks in advance