I used a fannie mae homestyle loan and renovated the cottage into my home office space for now.

At 80% occupancy the storage unit building combined with the now rehabbed retail space, the property will be cash-flowing about $25,000 a year($2,100/month at 80% occupancy).Once we are at 80-90% occupancy we will refinance doing 75% LTV and recoup 100% of my initial investment ($105,000) as well as my partners rehab costs (20k).

Interest payments on the commitment or as you draw.. this is HUGE.. we all charged on the commitment for years , but as the HML space got more competitive the bigger companies will only charge on funds that are drawn out. 

By remodeling every inch of it including new insulation in the crawl space and a vapor barrier.

in the old days HML charged interest on the commitment.. as competition came to the space most HML these days only charge on the drawn funds. 

I think college students will start to become more picky and will want more space, nicer amenities and nicer housing (especially if mom and dad are paying for it).If you are an operator that provides a superior service and product, I think you will be fine.

 That’s definitely a tight rope to walk.

The space is very crowded now, but overall I think they are a small footprint with corresponding risk.

I've been following commercial real estate for the past few years and I've developed a personal preference for the STNL space.

The two halves do not have any shared space.