Commercial/Mixed use Financing

[Natalie Brown]

This post is a mixed bag so I hope all can chime in with ideas. Here's my overview. I currently have 3 SFR's in our rental pool, the most recent purchase was a Fannie Mae property closed in July paid cash. It is set to rent in October and I am interviewing tenants. My husband and I have a 50k mortgage on one rental that is covered with monthly payment. No other personal/mortgage debt. Available cash approx. 250k, additional home equity loans avalable 100k. Income from other employment around 100k annually. Everything was moving along as planned until we found the deal we were looking for sooner than we anticipated. The subject property is 5 units, zoned commercial. Our long term goal is to rent all units for 5-7 years then take one of the units for our primary residence. The numbers work for us and the property alone is worth the sale price. Purchase price is 387k, we would like to put 100k down and finance the rest. Here's the rub, the property is in Florida and is a trifecta, meaning wind/flood/and homeowner policies are required with convententional financing. Flood is the backbreaker here, about 28k per year. We would insure for wind and HO at reasonable rate. There are other similar properties in the area and we have owned in FL flood territory before and avoided the ripoff by paying cash. I mentioned the recent Fannie Mae purchase only because I could get 100k equity on it, but the contract states I can't leverage it for 90 days after purchase. Any creative financing thoughts are welcome!