Is this property commercial or residential??

[Shane Engelken]

New to BP and overall still a newbie when it comes to RE investing. I've had 1 unit for 3 years and now looking to expand.

The deal I'm looking at is a 4-plex and a SFH. For what it's worth, the asking price is 135k and they have separate addresses (709 and 709 1/2) - but they are selling together. Cap rate just over 16%.

My question is, I know normally anything 5 units or larger is considered commercial and will require commercial financing. In this case though, since it's a 4-plex and the 5th unit is separate, would it be eligible for residential financing?  

Would I need to speak with someone at the city and see how it is zoned or would that make any difference? Again, I'm totally new to multifamily so if this is a dumb question I apologize in advance, I just but don't want to miss the deal but want to be well informed so I can plan out several exit strategies before jumping in.

Thanks,

Shane

[Antoine Martel]

It would be considered a commercial deal. Total amount of units is 5 units. But that price is very low for commercial lending. I think that you could go either way. Most commercial lenders have a price minimum much higher than that price.