How about a mixed use building? I love this type property as in many cases it is very hard to get them financed. This is typically a commercial loan. The FHA Full 203k loan is perfect for a renovation project on a mixed use building. Let’s look at a couple of examples in “Small Town America” where you might see mixed use properties. I have actually had some Realtors and agents tell me that there weren’t any in their area NOT, they are everywhere in most towns all over the USA. They look like this:
How about this one?
They are verywhere
They are all around you, but YOU have to open your eyes and mind to see their full potential. They can be financed using the FHA 203k loan program. Now that you see these examples, don’t you remember seeing them in your town? Sure you do. Now you can sell these properties to.
Think of it, any of these properties can be financed using the FHA 203k loan program. Your buyer is looking for a place to put their business and a home to live in, this is the best of both worlds isn’t it? Sure it is.
We did one in SF that had a store under 5 units so we reconfigured the upper two floors to have 4 units and it was a 203k. On the surface you don’t always have a 203k potential property, so call me and we’ll talk you through it. You can always get a 203k consultant to look at it and do a “feasibility analysis”. I had another one in Berkeley CA that was a grocery store on the ground floor and three units on the second floor. As long as one of those units is owner occupied you are in business. The borrower doesn’t have to use the commercial space it can be rented to one of the occupants of the other units or a totally unrelated party. Can you guess what cities these properties are located? Hint: 3 are in the same city and one is not.
Where else can you get 96.5% financing for a commercial building? I know when I was buying buildings like this we had to put 35% down in most cases. 3.5% down I could have purchased many more than I did.