Looking for The Best Storefronts for Sale or Mixed Use Storefront Apartments?
Now if you’re in the market, you are bound to run into so-called storefronts for sale. The properties mainly attract people who are perhaps looking to live and start a small business in the same building or those who want to invest in mixed-use property. Mixed used properties can be found in New York, Washington and lots of other cities across the US. The most common type are apartments above a store below.
Storefronts for Sale: What is a Mixed-Use Property?
A mixed-use building or property as it is called includes both residential and commercial space, this is the most common form of storefronts for sale. Another example of a mixed-use property in addition to the one above is a single-family home that has a doctor’s office on the ground floor. Also, large apartment buildings with office space or retail below.
Generally, the residential portion of these properties takes up more square footage compared to their commercial counterparts.
What to Watch Out for When Buying Storefronts with Apartments for Lease?
As a potential buyer, you need to be aware of the fact that changing a building’s certificate of occupancy from one type of activity to the next like commercial to residential isn’t easy. So, you should inspect the certificate closely. We have seen cases where buyers didn’t examine the certificate of occupancy and didn’t realize it was commercial until after purchasing the building. That’s why it pays to be careful!
Advantages and Disadvantages of storefront property for sale
When you see commercial real estate for sale by owner, you have the responsibility of doing due diligence. The big difference between buying a residential and mixed-use building is the type of seller you’re dealing with in most cases they have a different way of seeing things.
The advantage of such a property is perhaps renting to a business with a long-term lease. So, you don’t need to worry about a quick turnover. Most businesses cater to the block or the community, and once they are established, it is a steady income for you. Though the drawback is that evicting businesses is difficult. While tenants that sell food bring a host of inherent issues with them.
Some investors may also find that financing storefront property for sale is challenging. However, the upside is that the government offers various low-down-payment alternatives for mixed-use properties so as long as it meets their criteria. The FHA provides finance for buyers of both single as well as multifamily mixed-use properties so as long as the property is at least 51% percent residential.
If you are looking for storefronts with apartments for sale, check the classifieds and your local broker for information. However, regardless of how you go about finding a storefront for sale, it is essential to understand what you’re getting into. If you’re a doctor for instance and are going to start a home-clinic make sure that the office or storefront for sale has what you are looking or regarding space and certification. If you’re an investor, you’ll want to find a property that’s lucrative in terms of rent, resale or acquiring more capital for another venture.