Specialist · Bel Air, MD · Member since 2018 · 4 posts · 0 votes
So I've had my eye on a mixed-use property that is currently Zoned Residential Office.
Current Use: Upstairs residential 2Br/1Ba with private entrance - AirBnb'd for the last 3 years averaging approx $15,000 gross income/year. Downstairs 1200sf commercial space being used for the past 30 years as an owner-occupied photography studio (retiring)
Commercial rents for comparable office space around town are approx $20psf NNN utilized by typical professional service firms - lawyers, accountants, etc etc
I’d prefer to get a conventional mortgage on the property in order to have a lower down payment and longer amortization but I’m not sure the usage will allow. Any guidance and advice will be greatly appreciated. Thanks
It needs very little work. The AirBnb apartment is completely turnkey and even furnished. The 1200sf office area on the lower level could use some
Minor cosmetic updates - paint, light fixtures, maybe carpet replaced with a nice laminate plank in one of the offices. That’s about all it needs
Unless the commercial unit can pass as a residential unit to classify the property as a 2-unit residential then this will need to go commercial. Does the commercial unit have a kitchen and a full bath?
So I've had my eye on a mixed-use property that is currently Zoned Residential Office.
Current Use: Upstairs residential 2Br/1Ba with private entrance - AirBnb'd for the last 3 years averaging approx $15,000 gross income/year. Downstairs 1200sf commercial space being used for the past 30 years as an owner-occupied photography studio (retiring)
Commercial rents for comparable office space around town are approx $20psf NNN utilized by typical professional service firms - lawyers, accountants, etc etc
I’d prefer to get a conventional mortgage on the property in order to have a lower down payment and longer amortization but I’m not sure the usage will allow. Any guidance and advice will be greatly appreciated. Thanks
You'll need to do commercial financing on this property.