Buying Second Home To Run A Business Out Of?

[Cynthia Webley]

Hello, friends! In 2020 I'd like to purchase a second home to use exclusively as a business property.

I own an online retail company and we run out of a rented warehouse and I'd like to take my rental dollars and invest them in a house instead. I would rather do a home than a commercial property because of the flexibility of using it in the future. If I decide to do something different I can always rent a home out but a warehouse is more vulnerable to market downturns, also the market is oversaturated for warehouse rentals already. 

I plan to use the entire home for the business, or at least one upper floor. Then later possibly build a garage on the property and rent out the home itself and run the biz from the garage. I could also turn part of it into an air bnb or install a MIL apartment. Basically, there are lots of options. I do know that I can't duplex it legally, so I would always occupy part of it.

The biz just ships goods all day long. Typical Amazon business. No real noise or nuisance to neighbors.

Because I will spend 8-10 hours at this place DAILY does that count as an owner-occupied loan? What if I end up renting out part of it? Will they feel weird about it being for a business and not personal? Should I disclose my intentions or just tell them I plan to occupy? 

My primary house is on a conventional loan and I am quitclaimed onto it.

Anyone know what interest rate and down payment I might be looking at? Hoping for 10% down on the cash side.

My financials are super solid. We have no debt and a few million in stocks, retirement and our personal home equity. Husband is gainfully employed and credit is in the 850 range. My business has been profitable for three years but I am the sole owner. One employee will probably come to the property daily to help with shipping, but no customers.

I've purchased homes before but never a second one, so this one feels scary. I don't want to tell the bank the wrong thing.