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Updated over 5 years ago,
First commercial rehab/rental - Good idea?
We fell into a great opportunity to buy a commercial deeded building with a commercial rental downstairs, and a potential residential 2nd and 3rd floor (1 or 2 units depending). New roof, A/C and HWH in 2019, very little rehab besides cosmetic things Ill do my self. its on a main street, great store front, very aesthetically pleasing frontage. Com unit rented for $1500 and the Res unit $1200 before the building was foreclosed on. We are under contract for $180k. The numbers make great sense.
BUT...
This will be our FIRST project, rehab, rental, ever. We are approaching lenders, hard money and banks, who have said numerous times that "commercial would be a tough first project for you. Its a different animal". What are we missing? Any lenders out there that you've used that can help us finance this?
All info welcome and appreciated!