thank you very much, @Jonathan Klemm and @John Warren
On saturday, we offered 375 for the building, based on our realtor's comp list and the size of the building. the sellers were asking 399. they are currently reviewing the offer with their lawyer(s). indeed, the residential is more than 51% of the building, and we are pre approved for an FHA loan @ about 3.5%. It seems like the monthly PITI would be just shy of $2k. Definitely affordable for us as individuals, but also my wife's business has been paying that for the last number of years to rent a storefront in Ukrainian village.
In terms of holding, we intend to hold for as long as possible, as long as it makes financial sense. We will owner-occupy while we update it and make it comfortable for us and the modern world, and then hold and rent it in the future if that is what the future dictates. agreed, i have heard that mixed use is a hard sell recently, as storefronts are not renting these days. we put the offer in quickly after seeing it, because the sellers were planning on listing the building with an agent soon, and wanted to make sure we could put in a meaningful offer before potential competition joined in. also, our offer is basically giving them their asking price if they would have listed it and paid agents a 5% cut. Still not overly confident that our offer reflects the property's true value, though, without a professional inspection.
This week, my wife and I used the BP rehab calculator tool to create an excel spreadsheet to help quantify any/all of the upgrades/updates that we would like to do to the building, both in the short term (interior paint, window replacement) and the very long term (add pass-thru garage door, move/remove walls in apartment, open the layout). our next step is to try to source some number ranges for all of those projects, and use that to inform our priorities/expectations. we believe that if we close on the property, we can spend a month or two doing the high-priority items before we actually occupy the building.
Through the course of this week I have been excited and confident about the prospects, and I have been absolutely crushed with fear and uncertainty. Currently, though, as I keep learning, I am feeling more pragmatic and think we can make it work for us. The wisdom on this site refers often to building your trusted team, and with my wife as my main teammate through this, I feel that no problem will be to big to handle.