Mixed Use Advise

[David DeSimio]

Hello,

I am relatively new to BP and a residential buy and hold investor for a number of years now.  I ran across a mixed use property consisting of 2 store fronts, two 2x1 apartments above and an office space/light commercial unit to the rear.  Total sqr is <6k.  I am looking for advise on mixed use as the lending industry seems to view these as a black sheep.

The property has been neglected for a few years and housed lower end businesses in the store fronts due in part to the overall appearance.  Location is on the main drag in a midwestern town with no direct access to a major thoroughfare.  

The numbers are as follows: NOI = $1870/m with a 90% occupancy factor applied and all the expense goodies. Purchase and rehab would be in the $160k range. By the way, do mixed use follow the income valuation method?

My question is this...why would I consider adding small commercial inventory to our investments vs. staying with SFR and Multi?

Thank you!  David