First time investor potential deal

First time investor potential deal

Member since 2023 · 5 posts · 0 votes

Hey guys, my name is Blake Bailey and I'm 25 years old. I've been a real estate agent since August 2025 but my long-term goal is to become a full-time investor. I'm trying to figure out how I should fund this potential first deal I have found. it is a large building that is zoned Industrial and was used for a pool business and also was a small church for a few years. I am buying directly from the owner off market and he only wants the tax assessed value for the property. Just wanted to see how you guys think I should fund this deal. Should I possibly see if he will seller finance? Should I see about doing DSCR? I also own my home outright and could do a HELOC or should I just maybe even do conventional I also am not sure if I should leave it zoned Industrial and rent it out to a business or church like before or if I should rezone it residential and split it into a two unit Apartment just totally new to this and have been studying and learning as much as I can and just wanted to put this out there to see what you guys think about how I should maneuver this potential deal. Any advice is so appreciated. TIA!!

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  • Lender · Marlboro, NJ · Member since 2025 · 243 posts · 150 votes
    7mo

    Before getting too deep into financing, the bigger question is what the property's actual use will be. If it's currently zoned industrial and was previously used by a business/church, most residential investor loans (DSCR, conventional, etc.) usually won't apply unless it's converted and rezoned into residential units.

    So the real decision is the strategy:

    - Keep it industrial/commercial and lease it to another business or similar user
    - Rezone and convert it to residential, which can work but usually adds time, approvals, and construction risk

    For a first deal, many investors try to start with the path of least resistance with the existing zoning, then explore other options later once they control the property.

    First deals are usually best when they’re simple. Zoning changes and conversions can get complicated fast, so sometimes a more straightforward property is a better starting point.

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