Planning to buy a Commercial + Residential mixed complex, need advice?
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[{"id": "gmujfsl", "text": "No way to know if it's a good investment or not without more information. \n\nLocation, financing, etc. \n\nWhy is maintenance done by residential tenants? Very uncommon, at least in the US. \n\nIncome seems low for 100 units + 20 commercial.", "replies": [{"id": "gmukdu3", "text": "I think the 45k is just for the commercial component. But agreed, mixed income is a bit more complex than straight multifamily. Different risk profiles for commercial and residential.\n\nEven with location, you do need to worry about vacancies. No bank will lend to you if you just go in and say I'll always be at 100%. Do you live somewhere that COVID hasn't impacted the market? I can't imagine where that is, but maybe? Is there anything in the commercial leases that happens if ownership changes? Anything in the residential?\n\nNo opinion can really be provided without a lottery more information.", "replies": [{"id": "gmulyvr", "text": "No, 45K is both residential and commercial. \n\nI don't have to worry about vacancies, because the area is sprawling with development, and I can find another tenant within weeks. \n\nOwnership isn't going to impact the leases, unless I do something stupid like jacking up the rents. \n\nI don't want to give away too much information atm.", "replies": [], "depth": 3}], "depth": 2}, {"id": "gmukk3x", "text": "Location :- SEA (South East Asia) - Don't want to give away my location. \n\nFinancing :- I'll be paying cash. \n\nWell, maintenance is borne by the tenants here. I have no idea about US. \n\nWell, the rental income from residential isn't much.", "replies": [{"id": "gmunchh", "text": "Ahhh...cash. you seem to have convinced yourself this is a good idea. Since all the risk is on you here and there will be very few outside restrictions, go for it! No one on here is going to be able to offer any sort of educated/helpful opinion with what you've provided.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gmujl4n", "text": "There is so much more that is needed to know whether or not it is a good investment.  Length left on on leases, local or national tenants, etc.. A lot depends on the price.  Is this in the US?", "replies": [{"id": "gmukvip", "text": "Commercial leases have 5 years left on them, and are going to renew it. Residentials have no such thing as leases, they can leave whenever they want, but they just have to inform 2 months in advance. \n\nLocal tenants. \n\nNot USA, SEA country.", "replies": [], "depth": 2}], "depth": 1}]