Mixed Zoning Refinance (Residential to Commercial) Question
Hello,
I recently acquired a triplex located on land that is zoned as mixed commercial/residential. I renovated the property and leased all 3 residential units.
The appraised value is at $1 million if we're talking residential comps.
That said, if you were do to a net income capitalization approach to the valuation it's worth closer to $1.5 million.
Given that the current zoning is commercial/residential, should I be able to get obtain a commercial refinance loan for it even though there are only 3 residential units (less than 5) on the property?
If no, what about if I did some development to convert the 3 car garage to a coffee shop (or similar). At that point, does all income (both the residential units and commercial space) apply for the property's commercial valuation?
I appreciate any insight/feedback that you be offered. Thank you!