Multi family with commercial space

2 Replies

Hi BP!


I'm currently researching multi family properties and was wondering how rent, and other expenses were calculated/ impacted on properties with included office space, parking lot, etc. Would this automatically classify this as commercial?

Some units that I've seen so far have only 2-4 units but, again, some have additional business amenities.

Here are the 3 questions from above:

(1) would this type of property be automatically fall into commercial?

(2) how would expenses be impacted?

(3) Any webinars, or sources that are recommended to study and learn related to this?


Hi @D Higgs

Welcome to the forums! Let me try to answer your questions:

1) YES! When you have a building with commercial space, it becomes a commercial deal.

2) Financing is certain to be more expensive. Today I was quoted 5.5%-6% for a commercial loan with 25% down on a 25 year amortization. These terms don't sound great but they are pretty typical for commercial loans.

3) resources specifically about investing in mixed use properties? I don't know of any specifically but I'm sure they are out there.

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