Commercial property with 2 apartments upstairs.

[Scott S.]

Hey guys. I was wondering if I can get your advice on a possible deal. I was speaking to one of my customers today (I sell cars) and I mentioned that I'm Interested in buying a rental property (like a multi family home). He said, "I've got one for you!" He's thinking about selling a 4,000 sq ft house (in an area that I've been looking), but it's zoned commercial. He's getting a little older and is getting sick of being a landlord. The first level is roughly 2,000 sq ft with a business renting it and the second floor has 2 apartments that are each about 900 sq ft with 2 bedrooms each. 3 furnaces, 3 kitchens, new roof and vinyl siding.

My question is this, should I be worried about the fact that its zoned commercial?? What should I be thinking about with this property? Any tax implications or anything? All 3 units are occupied and he's bringing in about 1,800 per month (which is definitely a little lower than what he could get). He wants $135,000 for the property and he's willing to offer seller financing.

I'm hoping some of you can chime in and let me know what you think. Thanks!

Scott

[Bill Gulley]

Sounds like it might be a good property. The fact that it is a mixed use property has some pluses, residential is easier to lease and help carry the place if your commercial tenant leaves. Financing will always be a commercial, but I'd suggest you seek the seller financing and paly to the sellers benefits and finance it long enough to get 30/40% equity. Good luck!