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Updated about 4 years ago,
commercial building with apartments
Total Newb here...
I'm thinking about purchasing a building in the down-town area of my small town. It has a commercial space on the main floor that has had a nail salon tenant for about 7 years. The upstairs has 3 apartments, 2 2bdrm and 1 1bdrom. I'm wondering what additional considerations need to be made when thinking about a a commercial building instead of a residential property. The numbers seem good to me but I'm worried I'm missing something. Total rent is $2000, purchase price would be ~$155,000, taxes $3700. I'm not sure what insurance would be. The county has its value shown at $200k. Is there any way to do a BRRRR on a property like this with tenants? can I just refinance it after a year and push for a higher valuation based on the existing rents?