Looking to BRRR a mixed-use building...need advice, please!

2 Replies

Hello All, I may have found a BRRR'able mixed use building in Cali...but I've never done a non-exclusively-residential building before. Would the fact that there is a restaurant with the 2 apartments make this a mandatory commercial loan? Does anyone know about seasoning requirements for such a loan? I'd like to pull cash out ASAP for another deal before the end of the year.

If anyone has any references that they can point to as well, I'd appreciate it! Thank you in advance!

@Clint LeClair :

  1. Yes, this will be a commercial mortgage.
  2. Seasoning is typically 1 year on a commercial property.
  3. Have you run the numbers? What's the NOI? What's that selling Cap Rate? What's the market Cap Rate? How much renovation is required? How much longer on the restaurant's lease? Is the restaurant on a NNN lease? What are the value-add opportunities?

Lots to understand here.