Recently I purchased a triplex with a “mixed use” designation in Cash. It has a commercial element in the main floor unit which means I can’t put it into a traditional Residential Mortgage with an A lender in Canada. It has a cap rate of 7.3% and my hope was to have it appraised and refinanced so I could take my cash out and reinvest it elsewhere.
I have a follow up meeting with a commercial lender and I want to present my business strategy in such a way that they a) put a mortgage on the home b) appraise it higher than my purchase price and allow me to borrow more money against the property.
Any advice on how to present it to the lenders? What am I missing anything? Is there a better option you see for my case? One thing I was considering was getting the property re-zoned residential, but it would mean I couldn’t use the commercial element in the future which could be very useful.