Mixed Use Rental Financing - Help!

[Rob Cucugliello]

Hey all!

Looking for help here. So I found a mixed-use rental property for sale in NJ. It's a 2 unit property: 1 commercial and 1 resi. Both of them are already in lease (the commercial one has been there 17 years!) and the return is fantastic. Minimal repairs needed. I am relatively small time currently dealing with just a few SFH but looking to expand and this property looks perfect.

The problem I'm having is I can't seem to find anyone that will finance a mixed use property. I honestly don't even understand why. Can someone help me understand why I'm having problems, or even better, point me in the direction of someone who can help?

Thanks all!

[Dave DeMarinis]

@Rob Cucugliello Are you advertising the commercial spot as NNN? If that is feasible in the market and there are separate meters, you should not need a PM. In NNN (Triple Net) - the tenant is responsible for taxes, insurance and repairs. The landlord is possibly responsible for some large capital improvements carved out from repairs (roof, parking lot, HVAC and foundation are the typical negotiating items) but there should be very little intervention from management. Although, in NNN - the tenant even pays for management, since the tenant will still look at their total cost, I think for one NNN unit, you should consider "self managing." It is nothing like managing a residential unit.