Mixed-Use Property

[Devonte Dinkins]

Good Evening BP,

I am working on targeting a market as young investor and I feel like I will begin with Small-Mult-family buy-and-hold, specifically Mix-use in my area.  I would like to know the best ways to evaluate a small mix-use (Ex. 4 residential and 2 commercial), and the best financing options. 

[Gino Barbaro]

@Devonte Dinkins

Hi Devonte,

I owned a restaurant in NY for years, and we had 3 apartments above it.  IF you can buy an owner-occupied mixed use and run your business from it, I think it is one of the best risk limiting investments for a first time buyer.

You evaluate the deal based on NOI, just like a larger multifamily. Anything above 4 units will be a commercial loan, at this point in the cycle, around 5% interest, either a 5,7, or 10 year term depending on your banking relationship and either a 25 or 30 yr am.

Good Luck

Gino