a guy I know has a property that he was swindled into by some savvy(er) investors. he is unable to sell the property because he owes on the mortgage way more than most people are willing to pay for it. This property sits on a busy street filled with local ma and pa shops. He currently cannot rent this property for as much as the mortgage payment, although the property rents well at the going neighborhood rate. My question is this ; could he have the property zoned for commercial space and possibly sell/rent it for a better price as such. How would I find out if this is possible in this area. Also what are the pro’s and cons of doing this. Thanks for any help you can provide
Are people living in this property? Its zoned business/commercial but is it an office that he rents or is it residential? I just did a wierd loan for a guy who had a property that used to be an office and it got converted into a 2-unit duplex. It was zoned business/commercial but the zoning laws in that town said that business/commercial can also be used as residential so I got him a residential loan on it but the appraisal was a pain!! He also needed a rebuild letter from the township.
It’s zoned residential now, and he does have people renting it at the moment, but there are several businesses on the same street and church, so I don’t think he would have much trouble getting it zoned for commercial but you never know. it’s a small 1 bed 1 bath(no Tub just shower) with a 1 car garage and a small den/office area. in the area you can only get about $750 a month for rent but his mortgage payment is about $1300, so he needs to do something quick before he loses his butt on the whole thing. Any ideas on what else he could do… this is the only thing I could think of that may help him sell/rent for more.