Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
I'm looking to diversify my investment portfolio from purely residential units into office space. My plan is to acquire a building using an owner-occupied SBA loan and subsequently sublease the space I occupy through a co-working model.
I have a solid background in managing an office building locally, where I have consistently maintained occupancy rates of over 90% for the past three years. Therefore, I feel confident in my ability to handle office space management. However, I'm relatively new to both coworking and SBA loans.
I'm curious to hear from anyone who has utilized either or both of these strategies. Is it worth exploring, or should I consider it just another one of my ambitious ideas?
I'm typing this from a co working space. VentureX in Dallas has a great model. I think they do franchises as well.
I can't comment on whether this model works for SBA, I think they want to see existing cash flow from your business first. Are there other tenants in the 49% to support debt service?
@Ronald Rohde Roughly 1/3 of the space is occupied with long term tenants. From what I've learned in the last few days is that the SBA doesnt look to kindly on co-working spaces as the owner occupied business.
@Ronald Rohde Roughly 1/3 of the space is occupied with long term tenants. From what I've learned in the last few days is that the SBA doesnt look to kindly on co-working spaces as the owner occupied business.
I probably need to get with an SBA lender.
Yeah, doubt you'll get SBA. how much debt service can the 1/3 cover? thats your max loan, do the rest as equity.