Is Office hacking possible? Advisable? Any lessons or thoughts to share?

[Ranjith M.]

I am a full time IT consulting business owner and part-time real estate buy and hold investor - residential (SFR)/equity partner investor/condo. I have been following the posts and the podcasts on BiggerPockets for the last 1 year and hear a lot about House hacking (living in one home of a multi-home dwelling). I have never come across "Office hacking" - which to me would be one business owns the building and leases suites/space in the building to others. while using part of it for their own needs. I wanted to know if any of you in the Commercial Real Estate space has come across or dealt with office hacking. For my IT business, I could use a small space of our own (we currently lease space in a building shared with other small businesses with common facilities) but we are not sure if there is any precedent or tips to go about. Favorable interest terms perhaps?

Our ideal space would be small office/business friendly small office or suite type arrangement with shared facilities - conference room,kitchen, restrooms etc.  I am looking to do this in Irving, TX or Plano, TX or somewhere in between. 

[Albert Bui]

Yeah pretty easy get a SBA 504 loan in which you can finance 90% of the total acquisition cost and TI's, you bring in 10% down and must occupy 51% of leaseable square footage then do your numbers from there to see if that rental income can offset your monthly expenses. (commercial owner occupied).

You can always go conventional commercial financing but that will require 25-35% down payment.