Something that you really have to take into consideration is that most buildings here are a century old or even older.

as a break between living spaces.I'm not a builder but I imagine builders enjoyed a little savings by not having to budget for all the additional interior walls, but maybe that money had to go into costs anyway.Open floor plans are nice, but a bit too open for me.

They raise the money that is needed to purchase with the financing.  

Further, this type of operation is not financeable at anything other than the high end of hard money rates.   

We have invested a considerable amount already into the to-be-built plans, architects, engineers, etc.  

Here are some considerations for commercial real estate:Higher Income Potential: Commercial properties often generate higher rental income compared to residential properties, especially in prime locations.Longer Leases: Commercial leases tend to be longer (5-10 years or more), providing more stable cash flow and less frequent turnover.Tenant Diversity: Depending on the property type, you can diversify your tenant base, spreading risk across multiple businesses or corporations.Market Dynamics: Commercial real estate can be more sensitive to economic cycles and local market conditions, requiring a deeper understanding of business trends and tenant industries.Purchasing: Generally, commercial real estate will require 20% down.Choosing Between the Two:When deciding between commercial and residential real estate, consider these factors:Investment Goals: Are you looking for steady rental income, long-term appreciation, or both?

The seller is getting his money from my 2nd or third on the property.

Save more money too you will need reserves even if you can get a low/no money down option.

Can I charge my business as I am lending the money?

Honestly if your DTI are at the limit already and your parents need the money, sell it.