Need Advice - No real money to be made

[Dee Y.]

Having trouble making a decision. I have always wanted to convert an old building (i.e. warehouse, school, church, etc.) into a home. I have located a building that meets my needs but it is larger (over 8,000 sq ft) than I need for a single family residence.

The current layout lends itself to be converted to a great 4-6 unit (1 of them being mine). Here is the issue: I have determined, based on rents being charged in the area, I would just breakeven. No money to be made after acquisition cost + rehab + taxes + insurance. However, dependent on the final # of units (meeting with contractor tomorrow to discuss), I would either have zero cost for my unit or just a couple hundred dollars per month.

I have already located a source to provide acquisition and rehab financing if it is greater than 4 units (commercial) and another for a 4 unit (single family) property. I have sufficient cash for a downpayment. (I might have a problem meeting the ratios on the commercial financing if I occupy one unit, but no problems if this unit is leased.)

QUESTION: I am 50 years old, would be ok if I lost my job for whatever reason. Would you spend your cash on a property that would not make money but give you what you want? I have 4 single family rental properties so know the issues involved with tenants, pretty good savings and very few bills.

Another issue with this property is that I will end up with a 4 unit property and the cost will probably come out to be about $100,000 per unit. My unit will be substantially larger (approximately 2,500 sq ft) and upgraded finish out. There are a few plain, small, unexciting, small multifamily properties in the area going for $50 - $60,000 per unit.

What i've always wanted! Picture loft style units. Mine would be 2 story with an open loft.

Thanks for the advice.