Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Commercial Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 2 years ago on . Most recent reply

User Stats

7
Posts
2
Votes
Bruce Ng
2
Votes |
7
Posts

House hacking commercial property?

Bruce Ng
Posted

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!

  • Bruce Ng
  • Most Popular Reply

    User Stats

    449
    Posts
    409
    Votes
    Lawrence Potts
    • Real Estate Agent
    409
    Votes |
    449
    Posts
    Lawrence Potts
    • Real Estate Agent
    Replied

    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.

    Loading replies...