Mixed Use Rental Financing - Help!

[Rob Cucugliello]

Hey all!

Looking for help here. So I found a mixed-use rental property for sale in NJ. It's a 2 unit property: 1 commercial and 1 resi. Both of them are already in lease (the commercial one has been there 17 years!) and the return is fantastic. Minimal repairs needed. I am relatively small time currently dealing with just a few SFH but looking to expand and this property looks perfect.

The problem I'm having is I can't seem to find anyone that will finance a mixed use property. I honestly don't even understand why. Can someone help me understand why I'm having problems, or even better, point me in the direction of someone who can help?

Thanks all!

[Rob Cucugliello]

@Bryan Fenoff - I ended up going with a credit union. Thee terms were not as good (Adjustable rate every 5 years, with 25 year amortization) but the deal still works really well. 

If you go this route, don't be afraid to ask for terms better than what they initially offer. 

Its a bit more painful then getting a standard 30yr fixed, but once you're set up, you should be set. You'll likely need to pay mortgage thru an account you need to set up there, and you'll also have to pay taxes and insurance separately, you your paying three reoccurring bills. property manager will help this (im currently shopping for some) but that again will cut into profit margins.