New to BP and RE, with an interesting situation!
Hey all! Just a quick background of myself. I'm 23 years old with bachelors degrees in Ag Business and Crop Production. I'm getting married in July, and decided to get into real estate investing to build my portfolio and give my family a better life than the humble upbringings I had. Anything else you want to know, just ask!
So the situation. I decided not too terribly long ago that real estate was going to be my first step in creating an investment portfolio. Sitting on my couch last week, a buddy of mine gave me a phone call, which was pretty typical, but what wasn't typical was him pointing out that a local property was for sale that we would visit often when we were in college. I didn't think much of it being that I already knew it was for sale, until he told me the price. Upon hearing his words, I jumped on the web to find the property, and sure enough, it was just as he said.
The property is on 10 acres just outside of a small town in western North Dakota, just 20 minutes north of my current residence. On the property, there is a 3 bed 1 bath house with a newly remodeled kitchen. But what makes the property really interesting is the extras. There is also a bunk house, three large pole barns (roughly 12,000 sq. ft.) 90,000 bushels worth of grain storage, a grain dryer and a barn. This barn has a completely remodeled upper level that has been used for barn dances for the last fifty years, which is why we visited the property frequently.
My hope with the property would be to basically rent everything out and run the barn dances, but I wouldn't be opposed to living in the house if it makes financing easier or anything like that. I'm planning on borrowing the money for the down payment, closing costs and initial repairs from extended family. I've already run the numbers more times than I can count, and even under worst case scenario conditions, the property stands to net $25,000 per year before management expenses, which will be going to my future wife and I.
My question is, what is the best route to go for financing? I have a commercial lender telling me a commercial loan is the only way to go, but I myself should be close to qualifying for the mortgage based on my salary. Is there a reason to go with a commercial mortgage? Are there any legal requirements that I would have to have a commercial mortgage? Any other options or insight would be greatly appreciated!