Financial advisors have most of their networth in stocks and most of the top commercial brokers do not personally own any commerical properties, but many do own either apartments, multi-family, and single family homes which I believe are the best real estate asset classes to own in your personal retirement portfolio. 

I am using it as an AirBNB and plan to expand into commerical real estate.

I am thinking of HELOC but banks that i contacted suggested either they dont do HELOC for investment property and some of them required appraisal and will do only commerical credit line.Refinance for a 40K investment property is not looking very cost effective but that is an option that i am keeping it open.Promissary note on my property that something i did not explore.

It also might be hard to get a loan with your partnership, unless you go with a commerical loan (as opposed to a residential loan in your personal names).

Maybe not a neighborhood i woud live in, but it's working class.I like the idea of bigger commerical multi-family properties as you can diversify your risk of vacancy and the effect on your bottom line as compared to a duplex.FinExaminer- Your train of thought is right in line with mine.

I work in Commerical real estate in NYC so the commute is one of the only red flags I can see.How is the local economy doing?

FYI, banks will also lend commerical terms on 4 units or less.Good luck

When it comes to financing mixed use I'm not in favour due it falling under a Commerical loan.

In common practice, commerical properties have a 5 to 7 year fixed rate with a balloon.

Roberto Santana I do "extra payments" (not really, just pay extra each month) for my commerical property because I want a lower loan balance (and payment) when the 5 year period is up.