New investor looking for advice

[Colt Adkins]

Hi, I’m 23 and new to investing but I found a mixed use downtown building where the owner is willing to finance with 25k down and 25k interest free a year later on a 25 year amortized loan at 8%. The building currently brings in 4900 in income with 3 apartments and 3 commercial units(all about 1000sq ft). I plan to replace one of the units which is the same business I currently run and live in one unit. (I currently rent space for both) the property tax is about 300 a month and the insurance is around the same. The building appraised at 532k so my question is whether or not I’m missing something or if anyone has some hacks or tips. (I currently rent my commercial and living space for the same as the property units I plan to occupy)

[Ryan Rominger]

It sounds like a strong start, especially since you’re essentially converting your current expenses into equity. A couple things to double-check: make sure your rehab costs for the commercial unit are realistic, factor in potential vacancies or unexpected maintenance, and confirm that the interest-free portion of the loan is solidly documented. Also, even though you plan to live/work there, treat the numbers as if you’re a landlord, cash flow and reserves matter for long-term stability.