4/5 Unit property and how to finance?

[Connor Koehler]

Hey everyone,

I'm looking at a property that will end up at an 8 CAP for a 5-unit in an A-class area, value-add deal. The main unit is a quadplex, and the garage is converted into a studio apartment to make the 5th unit. I noticed on the tax assessor's site that it is registered as a 4-unit, and the current owner does have a residential loan with about 80% equity build. My issues are this:

1. Will this qualify for a commercial loan with the 5th unit being a garage unit? The zoning says it is CRO so I don't believe I would have any zoning problems, mostly lending...

2. Would it be possible for me to take a loan out for 100k to pay off the outstanding loan and then seller finance?

I'm trying to determine what creative ways of financing I should look at here. As much as I'd like to use some OPM, I'd prefer to get my first couple deals under my belt before taking on the responsibility of others' hard earned cash, that's just a personal preference for the time being.

Thanks in advance for the help!