New investor looking for advice

Member since 2026 · 1 post · 2 votes

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)

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Ryan RomingerBusiness Member

Real Estate Broker · Indianapolis, IN · Member since 2018 · 340 posts · 144 votes

6mo

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.

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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
6mo
Quote from @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)

Hey @Colt Adkins, welcome to the BP Forum! How long is the owner offering to do the seller financing?
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Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
6mo
Quote from @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)
A buddy of mine did that and it turned out really well for him. Just make sure you can handle the payments if you get a vacancy.
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Ryan RomingerBusiness Member
Real Estate Broker · Indianapolis, IN · Member since 2018 · 340 posts · 144 votes
6mo
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.
[email protected]317-935-0075
Intrigue Real Estate & Property Management4.6285 Reviews
Website View Page
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Janice Carter
Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 605 votes
6mo
Colt, that is a strong opportunity, especially with seller financing and existing income. Just make sure you have fully vetted expenses (maintenance, vacancy, CapEx), commercial lease terms and tenant stability. Also confirm zoning and any restrictions on your business use. If the numbers still cash flow after true expenses, this could be a great investment opportunity.

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Christina CarlPro Member
Investor · Member since 2017 · 1 post · 1 vote
5mo
Hey Colt, A few of us RE Investors are getting together at the Lake for happy hour to talk about investing in the area. You're welcome to join us - Thursday, April 9th 4-6pm at Baxter's.
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Garrett CrosbyPro Member
Real Estate Agent · Los Angeles, United States · Member since 2021 · 392 posts · 162 votes
3mo
Mixed-use deals like this are interesting because they can pencil really well but they also introduce a layer of complexity that pure residential doesn't have. A few things I'd flag:
Financing can be trickier on mixed-use than on pure residential. Depending on the commercial percentage of the square footage, some lenders will treat this as a commercial loan rather than a residential one — which means higher rates, shorter amortization, and tougher qualifying criteria. If the seller financing is in play, that's actually a major advantage here because you bypass the lender's classification entirely. That timing question from Jaycee above is critical — nail that down before anything else.
Also: you mentioned you'll be occupying one unit and running your business out of the commercial space. Make sure you're underwriting the deal at its market rate for all units, including the ones you're using yourself. The real test of whether the deal works is whether it cash flows when fully rented to third parties — not just as a live/work setup for you personally. That's the number that matters if you ever want to refi, sell, or scale.
Happy to DM if you want to work through the numbers or talk about what the financing path looks like given the seller financing angle.
[email protected]
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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
3mo
Quote from @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)

Hey @Colt Adkins. The trick with mixed-use properties is finding the lenders to finance them. Most HMLs can't finance them. Usually, in my experience, banks and credit unions are the primary lenders for those kind of properties.
[email protected]
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