Unique Three Family in Dover
Interesting 3 family sold in Dover (2025) for high $600’s.
This property spans over 4500sqft and is what I believe is a legal 3 family(although I’m not positive). This property has a two bedroom unit, a commercial unit, and a basement unit with additional rental income. Not a standard 3 family unit but can definitely be used as one. It’s also interesting to note that this property sold 100k below list price.
225k/unit and $145/sqft. For a price per unit standpoint, it’s slightly below market value.
Assuming that the commercial space doesn’t account for more than 50% of the space, someone can occupy this with as little as 3.5-5% down. It’s a bit hard to determine how much work this property needs but, for this sake, I’ll estimate 75k. I think a good financing tool for someone looking to occupy and also upgrade/repair is the Fannie Mae Homestyle Renovation Loan.
All in with PITI + maintenance/repairs + vacancy = $6700/mo.
If someone were to live in the basement unit and rent out the 2 bedroom and commercial space, they could rent an apartment for $2000 and $1500 for commercial space (I’m not too confident on the commercial space rent). Maybe someone can provide a bit more insight on a 1500sqft ish space in Dover.
Overall, unless the commercial space can rent for significantly more, I don’t think it makes much sense for the purpose I viewed it as. It could be best for someone who wants to live and work in the space/run a business out of it and then rent out the basement to help lower the mortgage.
What are your thoughts on the commercial space?