Potential storefront opportunity with duplex.

[Alec Jacobs]

Good evening everyone!

I found a building for sale with two units on the 2nd floor and one unfinished storefront on the 1st floor. This seems like a very interesting opportunity and I have a couple questions. How hard is it to find someone to rent out your storefront compared to a tenant in an apartment? What kind of businesses are evergreen? What are some unexpected hurdles about this? I am a complete beginner so would this be too much for me to handle?

Any insight would be greatly appreciated, thank you!

[Jamie Dietz]

Commercial space can be more complicated than residential.  Not only can it be harder to find a tenant but getting financing can be difficult.   I suggest you dig deep on what type of permanent financing will be available.   

[Ryan Muska]

When renting out a storefront, look for a business that requires the customer to come in (restaurant, hair/nail salon, massage, etc.). These business are more likely to last. 

That being said, it is quite hard to find people to rent those out. But, if the 2nd floor units are residential, then you may be able to handle a vacancy for some time as long as those two units are filled.

As far as biting off too much to chew, it seems like that may be the case here. Unless you plan on living in it as a primary, it may be more advantageous to focus on one type of class (residential or commercial) then move onto the mixed-use class.