First post- Advice needed on potential first rental purchase

[Beth Henson]

Hello everyone ! Thank you all for being a part of this wonderful community ! As a new investor, BP has been an invaluable resource. I appreciate any advice/suggestions/feedback you can provide. I am considering purchasing a 3 unit property in my hometown. One unit is occupied by a long-term commercial tenant (dentist office), one long term residential tenant, and one vacant residential unit. My first question has to do with the acquisition financing. I plan on doing a cash out refinance once fully occupied and some light (paint) rehab. I have a local community bank able to do the refinance at 70-80 % LTV, 5%, 20 year portfolio loan without seasoning requirements. I've asked the HML i've worked with before on deals (that i was outbid on) and they do not work with mixed-use properties. I'm finding that this is fairly common. I spoke with a representative from Equity Trust about using funds from a solo 401k to fund the acquisition (will be purchased through LLC) and that isn't an option either. Any suggestions on how to fund the acquisition of this property ?

My second question is what is your overall consensus/ thoughts on mixed use properties ? Other relevant info: the dentist just signed a new 3 year lease, fully occupied the property will cash flow approximately 250/unit. My primary concerns obviously are should the dentist leave filling that empty commerical space could prove to be difficult, however it could always be converted to a residential unit. I'm sure i'm probably forgetting some pertinent details, if so please ask ! Thank you in advance !