How to run numbers on property that contains SFH &amp; Industrial.
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[{"id": "grryxzq", "text": "\n[What Expenses are considered in a rental deal ](https://www.richstateofmind.com/post/how-much-money-should-you-save-per-rental-unit)", "replies": [], "depth": 1}, {"id": "grsicqe", "text": "Calculate your numbers on the resi as you normally would.  \n\n\nFor the industrial/commercial property, it will depend on what's in the lease (ie. is the tenant paying the outgoings, land tax, etc.? Find out that out to get the net rent figure (before mortgage payments)  \n\n\nA good broker may be able to get you a standard resi loan which would mean a smaller deposit needed and a better interest rate. If it's a commercial loan you'll need to front up a 30% deposit (most likely).", "replies": [], "depth": 1}, {"id": "grsiuis", "text": "You could calculate both separately then combine costs and cash flows for an overall NPV, IRR etc.", "replies": [], "depth": 1}, {"id": "grt4gt9", "text": "It\u2019s zoned for industrial and sfh? That doesn\u2019t sound correct. Are you trying to project rents? Or is their a lease in place?", "replies": [{"id": "grt8s4s", "text": "It\u2019s zoned heavy industrial, and property type is SFH &amp; industrial. I\u2019m trying to project rents.", "replies": [{"id": "grtjpaw", "text": "So the house would likely be used as an office. If you don\u2019t access to comps you could get on the assessors and look at similar properties to see what they sold for and the buyer type. Generally owner/user will pay more but it can still help give you an idea of what someone is capable of paying. I don\u2019t anything about the property/area, so it\u2019s difficult to say who the potential tenants could be and what it would take to get someone operating in the space.", "replies": [{"id": "grtpc3o", "text": "Totally. From the photos, it seems that the property owners live in the house, and then they have a separate office space attached to the warehouse and then they worked out of the warehouse for some sort of food processing company. That sort of setup would be perfect for someone I\u2019ve done business with before so that they can live onsite and don\u2019t have to commute, but I would wonder if that sort of person would be very few and far between that would want something like that. I can\u2019t imagine a completely separate tenant would like that (or that the business would want someone right there either). Definitely some interesting possibilities!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "grt9wia", "text": "1) Value the property as-is and then 2) highest and best use.  Something tells me a SFH residence + industrial building likely is not the H&amp;BU.\n\nFor as-is, value of the SFH + industrial (income approach; NPV).  \n\nWhat is the highest and best use of this property?  Value the property accordingly... Might be some value-add potential.", "replies": [], "depth": 1}, {"id": "grw4tfr", "text": "Get an attorney to walk you through the commercial transaction process. Structure and not losing the asset and more because you missed something is the most important part. \n\nI think what price to pay will be the easiest question to answer. \n\nWhether or not there is environmental contamination harder. \n\nHow desirable of an asset for a tenant is it, the hardest.", "replies": [], "depth": 1}, {"id": "gryfdtj", "text": "What city/state is your property located in? I work in the CRE industry and probably have the right attorneys for you.", "replies": [{"id": "grygteu", "text": "Fridley, MN.", "replies": [{"id": "gryhb41", "text": "Most of the attorneys I work with are national. If you want to private message me we can setup a quick call to discuss.", "replies": [{"id": "grylcz3", "text": "Awesome! Is it ok if I save this and I reach out when I have something more solid? I wouldn\u2019t want to waste their time when I haven\u2019t completed my DD \ud83d\ude04", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]