Finanincing a Mixed Use Shell in Philadelphia

[Marq Lee]

So I'm looking to secure financing on 3 story mixed-use building in Philadelphia. The asking price for the building is 98K but I'm sure I can get the seller down to 85-90K. I'm able to put 25K down.

The ground floor is a commercial retail space, with a large apartment on the 2 & 3rd floor. Both units are essentially in shell condition. In addition, I would like to roll 20K into the loan in order to rehab one of the two units.

My first option would be to rehab the commercial space and get a tenant in there to cover the mortgage while I slowly renovate the space upstairs into my dream apartment, which I would move into upon completion.

My second option would be to focus on the apartment first spend a bit more money to get it ready much sooner. If I do it this way, I can rent out my current home which would easily offset any losses from the empty commercial space.



Which option works best for financing? Can I get a commercial loan w/o a tenant lined up for the commercial space? If I plan on living in the apartment sooner than later will the fact that it's Owner-Occupied help or hinder me?