Comm/Storefronts W/ 2 Or 3 Rental Units... A Hard Sell?
This is for anyone who own and operates this type of property. Generally storefronts like cafe's or bookstores with rental condos on the 2nd, 3rd and sometimes 4th floor.
I have an opportunity here in Philly with a few rundown properties in a rapidly revitalized area. They are very large, some with 3 floors above the store level (with about 1250 Sq ft each). At the price I could get them for before rehab, the rent from either the store or 2 of the untis could probably cover my PITI.
I've heard that finding tenants for split-zoned props like this is difficult, and I'm, not entirely comfortable with a start-up biz fulfilling its lease obligation and becoming long term. My biggets concern is getting residents.
Any information or experience, as always, is greatly appreciated.
[addsig]
I wouldn't worry too much about it. Especially if the neighborhood is revitalizing. Certain first floor tenants will negatively affect the rentability of the residential units. Stay away from bars (noisy, especially late at night) and groceries (have a perception that they attract vermin) . But bookstores, cafes and other 'trendy" first floor tenants actually help with the upper floor renting because they give the impression that you are part of the revitalization of the neighborhood.
Mixed-use if one of the most popular types of development / redevelopment. going on in this area.