All Forum Posts by: Chanda T.

@Harjeet Bhatti

Thank you!

Hello!

So I'm looking to purchase a mixed-use property. It meets all of the criteria of qualifying for an FHA mixed use loan as I will be using it as my primary residence, the commercial space is less than half of the square footage.

I’m having the hardest time finding ANYWHERE in the world that services this type of loan (or at least advertises it).

Has anyone ever heard of this being done, done it, or know where I should be looking?

Thank you in advance!

@Kyle Altenau

Thank you!

@David Hulit

Thank you! Currently I operate as a sole proprietor - I wonder if that would still qualify? Also the commercial space looks to be smaller than the residential, as a portion of the downstairs is used as the entrance / stairway to the upstairs. Could garage and basement included in the commercial portion possibly count towards this?

@Steve Morris

Was considering living above at first but thought it would be easier to finance as a rental - do you think that puts too many eggs in one basket for a lender or does this up my odds - even though it’s still residential.

I’m looking to get financing on a mixed use property (355,000) - Apartment upstairs, commercial space first floor. All vacant as they just re-did it all.

My intention is to rent upstairs (1,800) and use the downstairs for my business. Currently I give 50% of my income (regardless of what I make) to the shop I currently “rent” a space at. Moving into my own space automatically doubles my income. The location itself is also better than where I am currently at.

My question is - do I tell the commercial lender my intentions for the property? Am I more or less likely to get approved if I will be the one paying the “rent” on the first floor? My traditional mortgage buddy told me to say it was purely for investment purposes in order to simplify the process. I feel like stating that I have a greater interest in paying the bills, and I can show that close to $30,000 a year is usually going to rent for my business... seems like a selling point?

After I state my intentions I can’t really press rewind so I’d love some advice!

Thank you!

I’m looking to get financing on a mixed use property (355,000) - Apartment upstairs, commercial space first floor. All vacant as they just re-did it all.

My intention is to rent upstairs (1,800) and use the downstairs for my business. Currently I give 50% of my income (regardless of what I make) to the shop I currently “rent” a space at. Moving into my own space automatically doubles my income. The location itself is also better than where I am currently at.

My question is - do I tell the commercial lender my intentions for the property? Am I more or less likely to get approved if I will be the one paying the “rent” on the first floor? My traditional mortgage buddy told me to say it was purely for investment purposes in order to simplify the process. I feel like stating that I have a greater interest in paying the bills, and I can show that close to $30,000 a year is usually going to rent for my business... seems like a selling point?

After I state my intentions I can’t really press rewind so I’d love some advice!

Thank you!

@Luka Milicevic

Thanks for the response! So I would either need to refinance or sell the Nashville rental in order to get the $150,000 or so that I would need. Ideally if course I’d want to keep it, I just worry about how difficult it will be for me to obtain an additional mortgage on the new property as well.

The $2,000 is actually a pretty generous budget! It’s insane how perfect this space is for my intended use already - literally needs an additional sink! (This doesn’t include furniture or business supplies of course)

It’s great to hear some banks will consider future income potential - I will definitely be looking into smaller banks. Thank you!

Hello! So I’ve been thinking in circles for weeks about how to best pull this off and I figured maybe this would be a great place to gain some insight into what I’m either missing or just not understanding.

I am looking to buy a corner mixed use property in the city, the goal being to open my business in the commercial space on the first floor.

Currently I live in and own a SFH a few blocks away, we pay around $1400/mo. We purchased in Jan 2019.

I have a rental property with no mortgage on it that currently rents for $1400/mo in Nashville, TN. Purchase price of $86,000 and currently worth about $220,000. It has been a rental for 7+ years.

The property I want to purchase is $350,000.

The potential income from the apartment is about $1,300 or $1,400/mo.

On the books we don't make much. I believe including the rental income after deductions we pay taxes on around $55,000/yr.

With the purchase of this property alone (which needs less than $2,000 of work to become my place of business) my income will automatically double as I will not be paying half to another shop owner. I also make close to twice what I was making the previous year currently.

I am open to all scenarios - selling or renting or living above the shop or having roommates, etc. I just can't seem to piece this puzzle together in my head and see the clear path.

Any advice would be appreciated! Thank you!