Conversion of a 5 family unit to a 4 family unit

[William Collins]

Now that my brewery is off the ground, and diversification of income have begun- I am looking at properties. There is a potential deal which I am inquiring on bundling which has 2 multi-family properties. One of them is deemed a commercial property due to the fact it is listed as a 5 family apartment. When there is a potential to convert to a 4 family due to some of the units being extremely small- 2 to 3 room apartments. I had some questions:

1) Could you get a conventional loan (non commercial) once the apartment is decommissioned? @Brandon Turner I know you went the other way from a 4 to 5 family unit. The thought would be to use private money to purchase and convert the house, repair. To then get conventional financing for long term hold.

2) If you saw the potential for an increase in occupancy through hitting the right size units for the market would you do so?

There appears to be a delinquent tax bill involved in the equation so I am still working on the numbers.

Thanks in advance for thoughts?