At what point is it commercial?

[Sawyer Smith]

Last year we bought a triplex in Joplin Mo and planned to do and extensive rehab and rent it out. Half way through the construction an inspector came by and gave us a stop work order because we were not doing it to commercial code and didn’t pull a commercial permit. Is a triplex really commercial? And if it does qualify as commercial according to building standards, can I refinance the building based on its commercial value?

[Erik W.]

Hi @Sawyer Smith!  I'm just up the road from you in Springfield, MO.

Typically, commercial building is anything over 4 units, at least in terms of loans.  I don't see anything hitting commercial as far as usage goes until your building requires fire suppression systems.  

For practical purposes, 4 units and under are almost always residential, especially if the primary use is for residential purposes only.  So I'm a bit surprised they're calling your building commercial.  But it could be a zoning issue.  The only way to really find out is to ask the Govt bodies in question.  Time for a call/trip to City of Joplin Office of Planning and Zoning to find out the ins and outs of your property.