I'm looking at a deal in Mansfield Ohio. This will be my first deal ever, and it will be a residential, commercial property with an auto shop, and one large storage unit that a business is operating in. The total cost is 145k and it has 16 cap rate. I understand the general process of purchasing a duplex for example, but being that this is also commercial, I was hoping to get some insight and guidance on this deal. The total gross income is over 2300 so it seems like a great deal, but I just want to be sure would anyone please be able to help me please DM me.
Real Estate Broker · Boone, NC · Member since 2024 · 82 posts · 55 votes
1y
This deal sounds promising, especially with a 16% cap rate and solid gross income. Since it’s a mix of residential and commercial, it’s worth working with a regional real estate broker to ensure the property aligns with zoning regulations and that the leases are structured properly. Some areas have restrictions on mixed-use properties, and commercial lease terms can vary significantly. Having someone who knows the local market can help you avoid potential headaches.
New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 441 votes
1y
Hey Josue, that sounds like a solid deal, especially with a 16% cap rate at a $145K purchase price, those numbers are hard to ignore. With the mix of residential and commercial tenants, financing and management will be a bit different than a standard duplex. You’ll want to look into zoning, lease structures, and potential maintenance costs (especially for the auto shop). Let me know if you need any help with financing. Good luck! Drago