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Updated almost 2 years ago on . Most recent reply
House hacking commercial property?
So I'm looking at a commercial property in Los Angeles county and this area has rent control in place
The property is a 5 unit, and they are all 1/1's. All of the units are making roughly half of market value for rent.
There is a open lot on the side of the property that I should be able to add another unit to.
I know if this was a residential multifamily, I can kick someone out and move in.
Does anyone have insights on this as a commercial property?
(Don't forget its California)
Thanks!
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I think residential rules still apply since they are living in these units. If these were commercial tenants (stores, businesses, etc.) then you would follow different rules. And I’m not sure how owner occupying would work with the lending you’d use to acquire it. It have to be a financial emergency to do so. But you may fall under the same rules since you are the owner of the property. It could differ if there’s time between closing and when you move in. But lenders will not lend to you if they know your intent is to move in. I’d talk to an attorney about this very unique situation. May cost you a bit but not as much as how much you’d pay in court for being wrong.