Type of loan for a 4 unit building, 1 is a commercial space

[Greg Worzalla]

Hello all-

New to BP posting but big reader of the website (soon to be Pro). Have a question that I believe I know the answer to, but if I'm looking at an investment property that has 3 apartments and 1 small commercial space (salon at the moment), I assume I will need to secure a commercial loan versus a residential loan for this property, correct? Still crunching the numbers, but cash flow is $2300/month and may be able to secure the property for $180k. Lots of expensive improvements/upgrades done in the past 6 years that would help offset any future big ticket expenses. The big thing I am not fully aware of is the cost of a commercial loan versus residential as up till now, we were only looking at SFH or duplexes. Thanks for all responses!