Mixed use properties

[Andre M.]

Anyone have experience with mixed use properties? I spotted a building with a leased first floor retail operation, and two empty apartments (wonder why) above.

What are some of the advantages, and disadvantages with this type of investment?

[John Warren]

@Andre M. keep in mind that you can use an FHA 3.5% down loan to finance mixed use as long as the residential part is more than 50%. If the commercial space is 50% or more then you have to put down 20-25% to do a commercial loan.

I have several mixed use buildings that I am listing this season here in Chicago, and I am making sure to advertise the one that can be financed using FHA very specifically to drive this type of buyer to the building.