New CRE investor in Brooklyn, NY

[Gene Genin]

I am looking to start investing into mixed use properties in Brooklyn area. I have been researching all neighborhoods if Brooklyn, going to viewings and speaking to commercial brokers. I am looking for some advise from experienced investors that have some suggestions or guidance. 

Nostrand ave is one area I have been looking at 2/1 or 3/1 mixed use building that are in $1.2m range.

[Remo F.]

I can say I went for mixed use due to the price being cheaper than the residential and I don't regret it. I have other residential buildings. When it comes to financing mixed use I'm not in favour due it falling under a Commerical loan.

Downpayment for me is the same but with closing costs not being bundled into the loan, plus points mean more cash to close. Plus the terms in general are not as good as residential. They tend to be 5/10 year ARMs.

Try and steer for mixed us that have three rentals instead of just the two, it can take a while to rent a Commerical space compared to residential, which I'm sure you already know.

Something I didn't know before buying a mixed use unit, you are required to have your boiler inspected every year and should it be replaced you MUST file for a permit to replace boiler or hot water heater.