What about this Mixed Commercial Deal
I'm looking at a mixed commercial that is currently vacant. One commercial and two apartments. There would be extensive remodel work needed for the apartments. Gross rents if fully filled would be 40,000. Asking is 120,000 and estimated construction costs at 75,000. No current tenants.
I did a commercial last year and this is in the same area. I was able to rent fairly quickly. And the location is a downtown in smaller but growing tourist town.
Pros: Good location, no zoning worries, residentials will lease easily.
Cons: The commercial space has a small storefront with a large corridor feel and may not lease quickly. Apartments need to be built from scratch.
Financing the property is not a problem but the potential negative cashflow with added remodel loans would become uncomfortable.
When doing a deal like this can I, ask the bank to delay mortgage payments for x amount of months? Anyway to get the upfront capital invest down on a deal like this?
Thank your for your time and thoughts!