first mixed use, are numbers good enough to buy?
Hello, I came across a mixed use building a few months ago. There are 12 residential units upstairs and 8 commercial units downstairs. The 1 bank willing to lend is requiring management for the first year as I have no commercial experience. The total price is $1,200,000 with current rents at $14832. Last years expenses for the property including taxes and insurance were $42171. The bank is willing to do a 80% ltv with a 20 or 25 year amortization on a 15 year balloon. Is this good enough to buy or would you more experienced investors shy away from a mixed use property? FYI all major items have been replaced in the last 4-5 years (roofs, heating system and windows) and management will charge 6% + 50% of first months lease amount. Thanks in advance