Apartment/Retail Combo Thoughts

[Nicholas Gessner]

Currently I live in Maryland but will be moving to Kentucky within the next year to year and a half when my girlfriend finishes her Doctorate at UK. My girlfriend is on board with house hacking so I have begun looking at small multifamily properties, primarily duplexes. While looking I stumbled across a building that has a downstairs retail space with 3 apartments above it going for $234,500 . According to the listing the retail space rents for $500 and the apartments rent as followed: $535, $650, and $500. It also states that the tenant pays electric and gas while the owner pays water and trash. The building is zoned as Limited Historic so does that mean anything in regards to income/expenses if anything? The estimated payments shown for a 30 year mortgage with 3.89% interest (average interest rate for area) and 20% down are $884 for mortgage, $133 insurance, and $136 in property taxes. Does anyone have experience renting an apartment/retail combo? Just curious in getting others thoughts as it does seem intriguing but not sure if the added retail space would make it difficult for a first time investor. Thank you!

[Steve Osowicz]

@Nicholas Gessner actually that happens to be one of my listings, zoning is area specific, LH (limited historic) where you are looking is designated ground level can be retail/office, upstairs can be residential. You are looking at a 30 yr mtg which is prob a residential loan product that allows 1-4 units, but I don’t know about a retail mix. Otherwise it would need to be a commercial loan product (maybe a loan officer can weigh in). Feel free to ask any questions about the property.