Rental unit with a buisness in the front

[William Frantz]

Hello All,

I am looking at a property it has two apartments two bedroom units and a business in the front of the building. The area is residential and it does not have a good parking area there is room but the tenants currently park on the street. There is only one electric and gas for all the tenants. The current land lord splits up the utilities pays the water sewer and garbage. The business is a hair salon it has three seats and one is for rent. What are your opinions as to this kind of arrangement.

[Mark Radford]

The utility arrangement seems like a hassle. It also sounds like you'd be getting in the salon business whether you like it or not. I'm assuming they use alot of water and don't mind letting it run since they don't get a bill for it. If all the stylists leave is there a plan for that space? Their clients follow them wherever they land so you could get stuck with no booth rent. What does the insurance policy in dollarslook like for that mixed-use situation?