I am considering a property in a commercial zone.
I am considering a property in a commercial zone. It has a house and on the same lot a large garage. There is a business operating in the garage, and they are paying rent. If I want to buy the property and live in the house, while keeping the business tennants in the garage, how will this look to banks?
This kind of combination, where there is an housing structure and a business structure is considered a mixed-use commercial property. These are pretty easy to finance with rates similar to residential. Keep in mind that the costs associated with this kind of transaction are higher. For example, commercial appraisal costs start at $1,000, compared to residential at about $250, and attorneys will charge a little more for the work.
Roman Shulman, http://www.CapitalFinanceWeb.com