Purchasing a mixed-use Property which loan do I use Help
I have operated a barbershop for 11 years renting yes I know don’t judge me. It is time for me to own my own property. I have found a mixed use property for the barbershop with a 1&1/2 bedroom apartment . The seller is asking $64,500 down from $80k, the property has been on the market for a year. I’m assuming it’s an older couple that owns the property and the building is paid for with the tenant paying $600 a month in rent.
The barbershop needs about $25,000 in work to get the space up and running. Personally I have about $50,000 to invest in the property. My credit is not good enough to take out any loans.
The seller has rejected my cash offer of $35k and $40k.
I am blessed to have people in my life with excellent credit that are willing to secure a loan for the property.
My novice thought process says dont use the entire $50k to negotiate a purchase price, since all my other offers have been rejected and i still need $25k for rehab.
The individuals that are will to assist already have homes and FHA Loans will it not work.
My question is what loan can I get to help with the purchase and the repairs to get the shop up in operating order?
Should I talk to a bank?
In total I believe $90k to $95k will be enough to purchase the building and do all repairs.
The building is 1,375squ ft. 700 is the commercial space.
I do have the $50k at hand but I don’t know how to proceed. I do not want to use all the $50k at once and still need the repairs done.
What’s should I do to secure the rest of the money for repairs and to purchase the property???