All Forum Posts by: Darren Samson

Thank you for the feedback Matthew. I appreciate your insights. 

I plan on holding this property for 30 years (I'm 34) and will live in it for at least 5. Then rent out the residential unit when I leave. 

My math is showing I'll owe $942 a month to cover the gap between the two rental payments. That's including high Baltimore property taxes, expenses, mortgage, etc. 

I would like this number to be lower since it's going to cost $120k up front for down payment and closing costs. But on the other hand, $942 for a 4 bedroom apartment in a nice part of Baltimore is an insane deal. 

So I'm on the fence. 

i live in the suburbs of Baltimore and for the past 5 years I've wanted to house hack a multi-family building and I finally have the down payment needed today.

I've been looking in Baltimore County and City for these opportunities but a mixed use building just came on my radar. 

The basement is rented to a religious organization and the first floor is a barbershop. Both have leases locked in until 2028. The second and third floor is a 4 bedroom, 2 bath apartment which I would live in. It's a nice place and an upgrade to my current apartment I rent. 

The property is $400k and brings in about $40k in rental income without the residential unit. 

As a newbie I have a few questions. 

#1 Is it dangerous to buy a mixed use commercial property as a beginner? The leases are locked in, and I like that it's a barbershop and not a restaurant. 

#2 I love Baltimore city, but the population is declining. All of the BiggerPockets YouTube videos advocate buying in growing areas. Are there exceptions to the rule?

#3 If the basement and first floor are commercial, and the second and third floor are residential (where I'll live), can I use a residential mortgage loan?

Thank you for your help!