Need some help

[Deandre Brown]

Hey fellow BP members,

I'm looking at a potential deal and wanted to get some feedback. The property is a 5-bed, 2.5-bath 3800sqft home with a separate area in the back where a woman runs her daycare business. There's a playground back there as well. The front part of the property is a house, while the daycare operates in the back.

The woman currently leases the daycare space and wants to stay, but the seller is looking to offload the property because he doesn't want to handle the updates or renovations it needs, which are significant. Because of this, he's willing to sell at a lower price. Once renovated, the ARV could easily reach the $500k range, based on similar homes in the area.

My question is: with the daycare operating in the back, would this pose any issues if I wanted to rent out the main house? I’ve already texted the seller for more information, including how long the daycare has been there and how much the woman is paying in rent. The daycare also has a website, so it seems well-established. I also asked if the seller has ever had tenants in the house itself.

How would you guys proceed in this situation? Any and all feedback is appreciated. Thanks!