Commercial to Residential??

2 Replies

This might be a bit of a stretch but im sure someone in the forums can probably answer this. 

I know that in order to get residential loans the multi family must be 1-4 units. So my question, is it possible to convert a 5 unit into a 4 unit by combining 2 of the units together and then qualify for residential lending?? 

For example can you get a hard money loan to buy the building, convert the 5 into a 4 for personal use and then refi out of the HML with a residential loan??

@kameron Wilson

I could be wrong, but I'm guessing that your intention is to live in one unit, that's why you're thinking a residential loan.

As @Taylor L. state think big, don't try to move a property down from commercial to residential.  Find a residential property instead and do both.

As an investor, you should always be seeking "highest and best." Taking that property from a 5 to a 4 unit is not using it as its "highest and best" use

just my $.02