You can charge higher rent (~$50/mth); the tenant pays some - or perhaps all - the operating costs (electricity/gas, water, DHW); and you can use residential machines (A high-efficienty front-load laundry can be found for $1000.00 or less).   

It's currently a sellers' market, and finding residential properties that cash flow without substantial down payment will be a challenge.

Investing in a commercial property seemed safer than residential at that time, I was not mistaken and it has been a great learning experience that has given me the confidence to embark in bigger projects and also advise my clients based on my experience.

(no consumer debt)Your mortgage is paid off (appx 380k)You guys are empty nestersYou have invested in residential real estate with positive cashflow, but nothing to write home about!

The residential part is NOT 50% of the building therefore, the loan has to be commercial which is fine.

Especially in this market.Most investors are going to have some equation they use to price residential investment property, for example, I pay 60X gross rents for rent ready properties in C+ or better neighborhoods.  

@Eric Littlepage it sounds like the property management company opted to have an auto renew of 12 months, most auto renew leases into a month-to-month, I have never seen someone do a 12 month auto renew at a residential property.

Those machines are much more expensive than residential ones.

I can think of about three people on BP that are in the PNW who post regularly about the commercial and residential space.

Hi BP, I had a loan with 3.5% 15 yr fixed loan a year ago, and now is trying to change to 3.375% 30 yr fixed for my primary residential. the closing cost is $2000.