Vacant Commerical - How to get a loan

[Diane G.]

Hey calling you commerical experts - I am looking at a mix use property, where the residential units are occupied and the commerical is vacant....When I go apply for loan, IF that is, does lender just look at residential rental income? Does lender bake in potential commerical income?  Thank you....

[Amit M.]

@Diane G. Diane!...what ever happened to the “queen of discount buying”? 

Also, I’d be leery of small commercial in SF. Big time. (Unless you’re going to use that space yourself.) 

1- an ordinance just passed midterm elections (placed by our board of stupidvisors of course;) that significantly fines LL’s with vacant commercial space. 
2- renting retail commercial was hard enough in SF, primarily because of use restrictions/red tape and exorbitant  build out costs, which hamstrings small businesses. And of course there are stringent restrictions on “formula retail”, so those larger firms which could afford the high costs often aren’t allowed. You can seek a conditional use permit, but with neighborhood activists...good luck with that!
3- on top of that, covid 19 will wreck havoc with retail spaces, creating significantly more commercial vacancies. 

All in all, I’d say it’ll be an uphill battle getting tenants ;)