I have a retail condo in mind that suites me well.

So far the only thing I found about owner occupied commercial is that 51% of the building should be occupied by the owner, however, I think they are refering to office space or somthing similar such as retail etc

I’ve been noticing buyers are willing to pay close to retail value for distressed properties just to lock in the historic low interest rate.

Hi BP,We manage a commercial retail outside of Houston and since right before Covid-19 until now there is this couple (looks like a boyfriend and girl friend) has been expressing interest in leasing 1 of our units for a Thai massage. 

People get burned when they run their "ARV" numbers based on high end retail flip finishes and then do a landlord grade remodel. 

Id have their projected value and maybe a chart of their equity growth over the years and maybe on the back have some retail options they can now consider.Being that you may not want them to know their full value as someone looking to buy at the lowest cost.

With 203K you pretty much have to pay retail for all work.

Several elementary schools, high schools and retail centers nearby. 3 Post-secondary schools in the area as well.Conservative Cash Flow (10% Vacancy): $86 / mthLess Conservative Cash Flow (6% Vacancy):  $170 / mthCoC Return: 55%Purchase Price: $199000Down Payment (20%): $39800Mortgage (3.0%, 25 year): $159200 = $753 / mthClosing Costs: $4000Land Transfer Tax: $1715Total Cash Required: $45515Rooms: 3Rent: $700Rental Income: $2100Mortgage Payment: $753Property Tax (1.18%): $196Insurance (Very Conservative): $150Repairs (10%): $210CapEx (10%): $210Vacancy (10%): $210Management Fees (10%): $210Utilities: $75 (Tenants pay portion)Total Expenses: $1930 / mthCash Flow: Income - Expenses: $2100 - $2014 = $86CoC Return:  Annual Income - Cash Required: $25200 / $45515 = 55%NOI: Gross Income - Operating Expenses (excluding Mtg): $2100 - $1177: $923

I find that number staggering considering the billions of dollars of both institutional and retail money invested in real estate every year.I'm trying to understand cashflow a bit better.

I find that number staggering considering the billions of dollars of both institutional and retail money invested in real estate every year.I'm trying to understand cashflow a bit better.