Mixed Zoning Refinance (Residential to Commercial) Question

[John E Ceisel]

Hello,

I recently acquired a triplex located on land that is zoned as mixed commercial/residential.  I renovated the property and leased all 3 residential units.

The appraised value is at $1 million if we're talking residential comps.  

That said, if you were do to a net income capitalization approach to the valuation it's worth closer to $1.5 million.

Given that the current zoning is commercial/residential, should I be able to get obtain a commercial refinance loan for it even though there are only 3 residential units (less than 5) on the property?

If no, what about if I did some development to convert the 3 car garage to a coffee shop (or similar).  At that point, does all income (both the residential units and commercial space) apply for the property's commercial valuation?

I appreciate any insight/feedback that you be offered.  Thank you!

[Candy Geo]

Hi @John E Ceisel I am currently asking the same questions since I intend on building 3-4 rental units and converting the current property into a retail/restaurant shop that's on a C-2 lot. Hoping others with more experience in commercial lending will give good answers to your questions! Happy Investing!