Hello,

An opportunity has come up for me to purchase the commercial building I have been leasing for the past 12 years and I'm looking for a little loan advice.

Building located in San Francisco

Offered to me for 1.1m - property " best use" valued at over 3m

Best use meaning raze/new construction or rehab into 4 live/work condos on top two floors, 1st floor retail.

My questions are:

Should I be looking at a construction loan or should I try to finance as income producing property with intent to refinance in a couple of years to pay for live/work conversion.

What type of down payment am I looking at for either type of loan.

Any advice would be appreciated.

What kind of business are you in?
Depending on how much you have available, you could do either. The first option should be easier if the cash flow from the property supports the purchase price (you buy as investor). If you get it as an owner occupied, it's still pretty easy as long as you can show the business cash flow is 1.2x the payment on the loan and you could buy it with as little as 10% down (higher rates). There is a 10% stated income (@ 700 score) but the rates are higher.
The second option will require more cash from your pocket (unless you do a credit tenant, etc) and a niche oriented lender. Some don't like the commercial/residential mix, but some will. You can contact me if you need more accurate answers because there are more questions to be asked.
best,