Key Facts: DSCR Loan Mixed-Use Property Financing in 2026
| Subject | Relationship | Object |
|---|---|---|
| Mixed-use DSCR loan | requires the property to maintain | 51% or more of net rentable square footage as residential space |
| DSCR ratio for mixed-use | is calculated using | combined net operating income from all residential and commercial units divided by total debt service |
| Wholesale DSCR lender | accepts minimum DSCR of 1.0x for mixed-use | compared to 1.20-1.30x typically required by commercial real estate lenders |
What Qualifies as a Mixed-Use Property for DSCR Loan Financing?
A mixed-use property combines commercial and residential spaces within a single building or connected structure. For DSCR loan eligibility, the property must meet two critical thresholds: at least 51% of net rentable square footage must be residential, and at least 51% of gross rental income must come from residential units. Properties that fail either threshold fall outside residential DSCR parameters and must pursue commercial financing with stricter terms, shorter amortization periods, and higher minimum DSCR ratios.
The distinction between residential DSCR and commercial financing is significant for investors. According to Fannie Mae property classification guidelines, properties with majority residential use qualify for residential underwriting standards, which provide longer terms, lower DSCR minimums, and simpler documentation requirements. In my experience structuring mixed-use DSCR deals across California and Washington, the 51% residential threshold is the single most important qualification factor that determines whether an investor gets a 30-year residential DSCR term or a 5-10 year commercial term with a balloon payment.
Common Mixed-Use Property Configurations
Storefront + Apartments Above
- Ground floor: 1-2 retail/office units
- Upper floors: 2-6 residential apartments
- Common in: Urban downtowns, walkable neighborhoods
- DSCR eligible: If 51%+ sqft is residential
Converted Single-Family + Commercial
- Main structure: 2-3 residential units
- Attached unit: 1 professional office or retail space
- Common in: Suburban corridors, main streets
- DSCR eligible: If residential portion dominates
6 Requirements for Mixed-Use DSCR Loan Qualification
- 151% residential square footage — at least 51% of the net rentable area must be residential units, measured by square footage on the appraisal report
- 251% residential income — at least 51% of the total gross rental income must come from residential tenants, verified by lease agreements
- 3Maximum 8 total units — most DSCR lenders cap mixed-use properties at 8 units total across residential and commercial, with a maximum of 3 commercial units
- 4Acceptable commercial use — commercial tenants must be in approved categories (retail, office, professional services) with no restaurants, bars, hazardous materials, or heavy industrial uses
- 5Minimum DSCR ratio of 1.0 — total combined rental income from all units must equal or exceed total debt service (some lenders require 1.10-1.25 for mixed-use)
- 625% minimum down payment — mixed-use DSCR loans require 75% maximum LTV, with some lenders requiring 70% LTV depending on unit count and commercial exposure
How Is the DSCR Ratio Calculated for a Mixed-Use Property Loan?
The DSCR formula for mixed-use properties uses total net operating income from all units — both residential and commercial — divided by the total annual debt service. This is one of the primary advantages of mixed-use DSCR financing: the commercial income adds to the residential income, often pushing the DSCR ratio above what a purely residential property would achieve. In my experience closing mixed-use DSCR loans in California, the commercial component frequently produces a higher per-square-foot rent than the residential units, which strengthens the overall DSCR calculation.
Mixed-Use DSCR Calculation Formula
DSCR = Total NOI (All Units) ÷ Total Annual Debt Service
NOI = (Residential Rents + Commercial Rents) − Operating Expenses
Debt Service = Annual Principal + Interest + Taxes + Insurance + HOA
Example: Mixed-Use DSCR Calculation — 4-Unit Building in California
Monthly Income
- Residential Unit 1: $2,200/month
- Residential Unit 2: $2,200/month
- Residential Unit 3: $2,400/month
- Commercial Unit (ground floor retail): $3,200/month
- Total Monthly Gross Rent: $10,000
- Residential Income %: 68% (qualifies)
Monthly Debt Service (PITIA)
- Principal & Interest: $5,800/month
- Property Taxes: $1,100/month
- Insurance: $350/month
- HOA (if applicable): $0/month
- Total Monthly PITIA: $7,250
- DSCR = $10,000 / $7,250 = 1.38
This mixed-use property qualifies for DSCR financing with a strong 1.38 ratio. The commercial unit contributes 32% of the total income while occupying less than 49% of the square footage, meeting both the 51% residential sqft and 51% residential income requirements. A DSCR of 1.38 qualifies with every wholesale DSCR lender that accepts mixed-use properties.
One critical detail that surprises many investors: DSCR lenders use the market rent from the appraiser's rent schedule, not the borrower's actual collected rent. If the property is below market rent due to long-term tenants on old leases, the appraiser's market rent assessment may be higher than actual rent, which improves the DSCR ratio for qualification purposes. Conversely, if the borrower has above-market rents, the appraiser may use a lower market rent figure. This is a nuance I navigate with investors on every mixed-use DSCR deal at Lumin Lending.
DSCR Loan vs Commercial Bank Loan for Mixed-Use Properties: Complete Comparison
The choice between a DSCR loan and a commercial bank loan for mixed-use property financing affects every aspect of the investment: loan term, qualification method, documentation requirements, and long-term stability. For properties that meet the 51% residential threshold, the DSCR loan consistently provides superior terms. Here is a side-by-side comparison based on our experience closing both product types across California and Washington.
| Feature | Wholesale DSCR Loan | Commercial Bank Loan |
|---|---|---|
| Loan Term | 30 years fixed (15, 20 also available) | 5-10 year term with balloon payment |
| Amortization | Fully amortizing over 30 years | 20-25 year amortization with 5-10 year balloon |
| Minimum DSCR | 1.0x (some programs accept 0.75x) | 1.20-1.30x minimum required |
| Income Verification | None — property income only | Full personal + business tax returns, P&L, balance sheet |
| Global Cash Flow Analysis | Not required — property stands alone | Required — all borrower debts and income analyzed |
| Down Payment | 25% minimum (75% LTV) | 25-35% minimum (65-75% LTV) |
| Credit Score Minimum | 620+ (best pricing at 700+) | 680+ typically required |
| Closing Timeline | 21-35 days | 45-90 days |
| LLC/Entity Vesting | Yes (most lenders) | Yes (required by most banks) |
| Recourse | Personal guarantee required | Personal guarantee + possible additional collateral |
| Refinance Risk | None — 30-year fixed term | Balloon payment forces refinance every 5-10 years |
The comparison makes the DSCR advantage clear for qualifying mixed-use properties. The 30-year fixed term eliminates refinance risk, the property-only qualification simplifies the process, and the lower minimum DSCR ratio (1.0 vs 1.20-1.30) makes more properties eligible. For investors who qualify their properties through the 51% residential threshold, the wholesale DSCR channel delivers a structurally superior loan product compared to what any commercial bank offers.
Mixed-Use DSCR Loan Unit Limits: How Many Commercial and Residential Units Are Allowed?
DSCR lenders impose specific unit limits for mixed-use properties that vary by total unit count. The general rule scales the maximum commercial unit count proportionally to the total number of units, with the residential majority always maintained. Understanding these limits is critical for investors evaluating mixed-use acquisition targets. In my practice at Lumin Lending, I pre-qualify mixed-use properties against each wholesale lender's unit limit matrix before the investor goes under contract, preventing surprises during underwriting.
| Total Units | Max Commercial Units | Min Residential Units | DSCR Eligible? |
|---|---|---|---|
| 2 units | 1 commercial | 1 residential | Yes (if 51%+ sqft residential) |
| 3 units | 1 commercial | 2 residential | Yes |
| 4 units | 1 commercial | 3 residential | Yes |
| 5-6 units | 2 commercial | 3-4 residential | Yes (select lenders) |
| 7-8 units | 3 commercial | 4-5 residential | Yes (fewer lender options) |
| 9+ units | N/A | N/A | No — commercial financing required |
The fewer lender options for 5-8 unit mixed-use properties highlights why wholesale broker access matters. While a single lender or bank may decline a 7-unit mixed-use property, a wholesale broker who accesses 200+ lenders identifies the specific programs that accommodate larger mixed-use configurations. At Lumin Lending, we maintain relationships with every DSCR lender that accepts mixed-use properties across their full range of unit limits, giving our investors maximum flexibility in their acquisition strategy.
What Commercial Uses Are Allowed in Mixed-Use DSCR Loan Properties?
DSCR lenders carefully evaluate the type of commercial activity in mixed-use properties. The general guideline is that low-risk, service-oriented commercial uses are accepted while high-risk, hazardous, or entertainment-focused uses are excluded. The specific list of accepted and excluded commercial uses varies by lender, which is another reason wholesale broker access to multiple programs is valuable. Here is a representative list based on our experience across 200+ wholesale DSCR lenders.
Typically Accepted Commercial Uses
- Retail stores (clothing, home goods, specialty)
- Professional offices (law, accounting, consulting)
- Medical and dental practices
- Hair salons, spas, and personal care services
- Insurance agencies and real estate offices
- Bakeries and coffee shops (without full kitchen/bar)
- Tutoring centers and educational services
- Art galleries and creative studios
Typically Excluded Commercial Uses
- Restaurants with full commercial kitchens
- Bars, nightclubs, and entertainment venues
- Gas stations and fuel storage facilities
- Auto repair shops and body shops
- Dry cleaners (chemical solvent risk)
- Cannabis dispensaries (federal law conflict)
- Businesses with hazardous materials
- Adult entertainment or adult retail
The commercial tenant type restriction is the most commonly overlooked qualification factor in mixed-use DSCR deals. I have seen investors go under contract on mixed-use buildings with ground-floor restaurants, only to discover during underwriting that the restaurant classification disqualifies the property from DSCR financing. Before making an offer on any mixed-use property, investors should confirm the commercial tenant type with their broker to ensure DSCR eligibility.
How Does a Mixed-Use DSCR Loan Appraisal Work?
Mixed-use appraisals are more complex than standard residential appraisals because the appraiser must evaluate both the residential and commercial components separately and then reconcile them into a single value conclusion. This complexity adds time and cost to the process but provides a more comprehensive property valuation that supports the blended income stream DSCR calculation.
5 Components of a Mixed-Use DSCR Appraisal
- 1Income approach valuation — the appraiser calculates the property's value based on its total net operating income and a market-derived capitalization rate, weighting both residential and commercial income streams
- 2Sales comparison approach — the appraiser identifies 3-6 comparable mixed-use property sales within the market area and adjusts for differences in size, unit count, condition, and commercial exposure
- 3Rent schedule analysis — market rent for each residential and commercial unit is assessed independently, providing the rent figures used in the DSCR calculation
- 4Square footage verification — the appraiser measures and confirms the residential vs commercial square footage allocation to verify the 51% residential threshold
- 5Commercial tenant analysis — the appraiser evaluates lease terms, tenant quality, remaining lease duration, and the commercial tenant's business type for lender eligibility
Mixed-use appraisals typically take 3-4 weeks to complete, compared to 2-3 weeks for standard residential appraisals. The additional time accounts for the commercial comparable analysis, the dual valuation approach, and the more detailed rent schedule. At Lumin Lending, we order mixed-use appraisals from appraisers experienced in blended-use properties to minimize turnaround delays and ensure the report meets the specific requirements of each DSCR lender's underwriting team.
California ADU Legislation and Mixed-Use DSCR Loan Opportunities
California's accessory dwelling unit (ADU) legislation has created new mixed-use possibilities for property investors. Under current California law, homeowners and investors can add ADUs to existing properties, potentially creating configurations that qualify as mixed-use for DSCR lending purposes. While this is a more nuanced application of mixed-use DSCR financing, it represents a growing opportunity in California's high-value real estate markets.
The most common California ADU mixed-use scenario involves a property with a primary residence or residential units plus a commercial ADU or a garage conversion used for professional office space. The 51% residential requirement still applies, and not all DSCR lenders accept ADU-based mixed-use configurations. In my experience at Lumin Lending, approximately 30% of our wholesale DSCR lenders have explicit ADU mixed-use policies, and we route these deals to lenders with proven track records of closing ADU-based mixed-use transactions in California.
Important ADU Mixed-Use Considerations
- ADU must be permitted and meet all local zoning requirements for commercial use
- Residential square footage must still exceed 51% of total rentable area including ADU
- Commercial ADU must house an acceptable commercial use (no restaurants, bars, hazardous materials)
- Fewer DSCR lenders accept ADU mixed-use vs traditional mixed-use configurations
Why a Wholesale Mortgage Broker Delivers the Best Mixed-Use DSCR Loan Terms
Mixed-use properties present more underwriting complexity than standard residential investment properties. Not every DSCR lender accepts mixed-use properties, and among those that do, the specific policies on unit limits, commercial tenant types, DSCR minimums, and LTV caps vary significantly. This is where the wholesale broker advantage becomes most pronounced: access to 200+ lenders means the broker identifies the specific programs that fit each mixed-use property's unique configuration.
Wholesale Broker Advantage: Mixed-Use DSCR Scenarios
Scenario 1: High Commercial Rent Exposure
Property generates 48% of income from commercial unit. Some DSCR lenders decline because they require 55% residential income. A wholesale broker routes to a lender with a strict 51% threshold, qualifying the deal. The investor saves the difference between DSCR terms and commercial bank terms on every payment for 30 years.
Scenario 2: 6-Unit Mixed-Use with 2 Commercial
Many DSCR lenders cap at 4 total units for mixed-use. A wholesale broker identifies the lenders who accommodate 5-8 unit mixed-use and compares their rates, LTV limits, and DSCR minimums to find the most competitive program for the specific configuration.
Scenario 3: Bakery as Commercial Tenant
A bakery sits in a gray area between retail (accepted) and restaurant (excluded). Some lenders classify bakeries as retail, others as food service. A wholesale broker knows which lenders accept bakery tenants and routes the deal accordingly, preventing a declination in underwriting.
The complexity of mixed-use DSCR underwriting is precisely why wholesale broker access produces dramatically better outcomes for investors. Every mixed-use property has unique characteristics — unit count, commercial tenant type, income split, square footage allocation — and matching those characteristics to the right lender's specific guidelines is a process that requires knowledge of multiple lender programs simultaneously. At Lumin Lending, we pre-screen every mixed-use property against our lender matrix before the investor commits to a purchase, ensuring DSCR eligibility is confirmed before money is at risk.
People Also Ask: DSCR Loans for Mixed-Use Properties
What minimum DSCR ratio do lenders require for mixed-use properties?
Most wholesale DSCR lenders require a minimum 1.0 DSCR for mixed-use properties, meaning total rental income equals or exceeds total debt service. Some lenders require 1.10-1.25 for mixed-use due to the perceived higher risk of commercial vacancy. The minimum DSCR requirement varies by lender, credit score, LTV, and property configuration. A wholesale broker compares DSCR minimums across all available mixed-use programs to find the most accommodating option for each specific property.
Can I use commercial rent to help qualify for a mixed-use DSCR loan?
Yes, both residential and commercial rental income count toward the DSCR calculation for mixed-use properties. The DSCR formula uses total net operating income from all units divided by total debt service. Commercial units often produce higher per-square-foot rents than residential units, which strengthens the overall DSCR ratio. The property must still meet the 51% residential threshold for square footage and income to qualify for residential DSCR rather than commercial financing.
How long does it take to close a mixed-use DSCR loan?
Mixed-use DSCR loans typically close in 28-42 days, approximately 7-10 days longer than standard residential DSCR loans. The additional time accounts for the more complex appraisal (income approach + sales comparison for both residential and commercial components) and the commercial tenant evaluation during underwriting. Investors should build a 5-week closing timeline into their purchase contracts for mixed-use DSCR transactions.
Do mixed-use DSCR loans require reserves?
Most lenders require 6-12 months of PITIA reserves for mixed-use DSCR loans, compared to 3-6 months for standard residential DSCR. The higher reserve requirement reflects the additional risk of commercial tenant vacancy. Reserves can typically be held in checking, savings, retirement, or investment accounts. Some lenders accept business entity reserves if the property is held in an LLC.
Can I get a mixed-use DSCR loan with a 620 credit score?
Some wholesale DSCR lenders accept 620 credit scores for mixed-use properties, though options are more limited compared to 680+ scores. Lower credit scores may result in higher DSCR ratio requirements, lower maximum LTV, or additional reserve requirements. The wholesale broker advantage is especially valuable at lower credit tiers because fewer lenders are available, and finding the most competitive option among those that do accept 620 scores requires access to the full market.
Is a mixed-use property a good investment compared to pure residential?
Mixed-use properties offer higher total rental income per building due to commercial rent premiums, but they carry additional complexity in tenant management and leasing. Commercial leases are typically longer (3-5 years vs 1 year residential) which provides income stability, but commercial vacancies take longer to fill. The blended income stream from residential and commercial tenants provides diversification that pure residential properties lack. Investors should evaluate each mixed-use opportunity based on the specific market, tenant mix, and property condition.
What insurance is required for a mixed-use DSCR property?
Mixed-use properties require a commercial general liability policy that covers both the residential and commercial portions of the building. Standard residential homeowner's insurance is insufficient for mixed-use properties. The policy must include general liability, property coverage, loss of rent coverage, and any commercial-specific endorsements required by the commercial tenant's business type. Insurance costs for mixed-use properties are typically 20-40% higher than comparable purely residential buildings.
Can I convert a commercial property to mixed-use and then get a DSCR loan?
Converting a commercial property to mixed-use is possible but requires zoning approval, building permits, and completed construction before DSCR financing. DSCR lenders require the conversion to be fully completed with a certificate of occupancy for the residential units before they will fund. Bridge or construction financing is typically needed for the conversion phase, followed by a DSCR refinance once the property is stabilized with residential and commercial tenants in place.
Frequently Asked Questions: DSCR Loans for Mixed-Use Properties
What qualifies as a mixed-use property for DSCR lending?
A mixed-use property for DSCR lending must maintain at least 51% of net rentable square footage as residential space and at least 51% of gross rental income from residential units. The property combines commercial space (retail, office, professional services) with residential units in a single building or connected structure. Properties that are majority commercial do not qualify for residential DSCR programs and must use commercial financing instead.
How is the DSCR ratio calculated on a mixed-use property?
The DSCR ratio on a mixed-use property is calculated using total net operating income from all units (both residential and commercial) divided by total debt service. The formula is: Total NOI (residential rent + commercial rent - operating expenses) / Total Annual Debt Service (principal + interest + taxes + insurance + HOA). For example, a property generating $8,000/month total rent with $6,500/month PITIA has a DSCR of 1.23. Both residential and commercial income count toward qualification.
What is the minimum down payment for a mixed-use DSCR loan?
Mixed-use DSCR loans typically require a minimum 25% down payment (75% maximum loan-to-value). Some lenders require 30% down for mixed-use properties with higher commercial exposure. The larger down payment compared to standard residential DSCR loans (which allow 20-25% down) reflects the additional risk lenders assign to commercial tenancy. Credit score, DSCR ratio, and property location also affect available leverage.
What credit score do I need for a mixed-use DSCR loan?
Most mixed-use DSCR lenders require a minimum credit score of 620, though 680 or higher typically qualifies for the most competitive pricing. Credit score impacts both rate and maximum leverage. Borrowers with 700+ scores access the widest selection of mixed-use DSCR programs through the wholesale channel. Some lenders adjust their DSCR ratio requirements based on credit score, requiring higher ratios from borrowers with lower scores.
Can I use a DSCR loan for a mixed-use property with a restaurant or bar?
Most DSCR lenders restrict the types of commercial tenants in mixed-use properties. Restaurants, bars, nightclubs, gas stations, auto repair shops, and businesses involving hazardous materials are commonly excluded. Acceptable commercial uses typically include retail stores, professional offices, medical practices, salons, and service businesses. Each lender has a specific list of prohibited commercial uses, and a wholesale broker identifies which lenders accept your specific commercial tenant type.
Do I need personal income documentation for a mixed-use DSCR loan?
No. Mixed-use DSCR loans qualify based on the property's rental income, not the borrower's personal income. No tax returns, W-2s, pay stubs, or employment verification is required. The lender evaluates the property's ability to generate sufficient rental income to cover the mortgage payment. This makes DSCR loans particularly valuable for self-employed investors, business owners, and individuals who do not show strong personal income on traditional documentation.
How many units can a mixed-use property have for DSCR financing?
Most DSCR lenders cap mixed-use properties at 8 total units, with a maximum of 3 commercial units. The specific limits vary: a 4-unit property can typically have 1 commercial unit, a 6-unit property can have 2, and an 8-unit property can have up to 3. Properties exceeding these unit limits typically require commercial multifamily financing rather than residential DSCR programs. A wholesale broker identifies which lenders accommodate your specific unit count and configuration.
What types of appraisals are required for mixed-use DSCR loans?
Mixed-use DSCR appraisals require both an income approach and a sales comparison approach. The income approach values the property based on its rental income stream and capitalization rate. The sales comparison approach compares the property to recent sales of similar mixed-use buildings. Some lenders also require a cost approach. Mixed-use appraisals take longer (3-4 weeks) and cost more than standard residential appraisals because the appraiser must evaluate both the residential and commercial components separately.
Can I hold a mixed-use DSCR loan in an LLC?
Yes. Most DSCR lenders allow mixed-use properties to be held in an LLC, corporation, or other legal entity. Vesting in an LLC is standard practice for mixed-use investment properties because it provides liability protection between the commercial and residential operations. Some lenders require the LLC to have an operating agreement, and the individual borrower must personally guarantee the loan even when the property is held in an entity.
What happens if a commercial tenant vacates in my mixed-use property?
If a commercial tenant vacates, your actual DSCR will drop because total rental income decreases while debt service remains the same. However, the DSCR ratio used for loan qualification is based on market rent at the time of origination, not actual occupancy going forward. Most lenders require reserves (typically 6-12 months PITIA) to cover potential vacancy periods. Having a diverse tenant mix and strong residential occupancy helps cushion the impact of commercial vacancy on your cash flow.
Is a mixed-use DSCR loan better than a commercial bank loan for mixed-use properties?
For properties that meet the 51% residential threshold, a DSCR loan typically offers better terms than commercial bank financing. DSCR loans provide 30-year fixed terms versus 5-10 year commercial terms, lower minimum DSCR ratios (1.0 vs 1.20-1.30), no personal income verification, and no global cash flow analysis. Commercial loans require full financial disclosure, shorter terms with balloon payments, and higher debt coverage ratios. The DSCR advantage is significant for investors who want long-term, stable financing without personal income documentation.
Can I do a cash-out refinance on a mixed-use property using a DSCR loan?
Yes. DSCR cash-out refinances are available for mixed-use properties, typically at a maximum LTV of 65-70% (compared to 70-75% for standard residential DSCR cash-out refinances). The property must meet the 51% residential threshold and achieve the lender's minimum DSCR ratio based on the new, higher loan amount. Cash-out refinances are commonly used to extract equity from appreciated mixed-use properties for reinvestment into additional properties.
How does California ADU legislation affect mixed-use DSCR eligibility?
California's ADU laws allow homeowners and investors to add accessory dwelling units to residential properties. In some cases, a property with a primary residence plus a commercial ADU or a commercial property with residential ADUs can qualify as mixed-use for DSCR purposes. However, the 51% residential requirement still applies. DSCR lenders evaluate each ADU configuration individually, and not all lenders accept ADU-based mixed-use structures. A wholesale broker identifies which lenders have favorable ADU mixed-use policies.
Expert Summary: Mixed-Use DSCR Loans Give Investors 30-Year Stability on Blended Income Properties
Mixed-use properties that meet the 51% residential threshold unlock access to DSCR loan programs with 30-year fixed terms, no income verification, and minimum DSCR ratios as low as 1.0 — terms that are structurally superior to commercial bank financing in every measurable category. The blended income from residential and commercial tenants creates a diversified cash flow stream, and the commercial component often strengthens the overall DSCR ratio beyond what a purely residential property achieves.
As a wholesale mortgage broker licensed in California and Washington, Mo Abdel at Lumin Lending provides access to every DSCR lender that finances mixed-use properties. We pre-qualify each property's unit count, commercial tenant type, square footage allocation, and income split against our lender matrix before you go under contract, ensuring your mixed-use investment is structured for DSCR approval from day one.
Related DSCR & Investment Property Resources
Mo Abdel | NMLS #1426884 | Lumin Lending, Inc. | NMLS #2716106 | DRE #02291443
Equal Housing Lender. All loans subject to credit approval, underwriting guidelines, and program availability. Terms and conditions apply. This is not a commitment to lend. Information is for educational purposes only and does not constitute financial or investment advice. DSCR ratios, rental income projections, and property valuations are estimates that vary by lender, market conditions, and property characteristics. Actual DSCR ratios, loan terms, down payment requirements, and qualification criteria vary by lender and are subject to change without notice. Mixed-use property eligibility, unit limits, and commercial tenant restrictions vary by lender program. Not all DSCR lenders accept mixed-use properties. Real estate investment involves risk, including the potential loss of invested capital. No profit, rental income, or property appreciation is guaranteed. Past performance is not indicative of future results. Commercial vacancy, tenant turnover, and market fluctuations affect actual investment returns. Tax implications of mixed-use property ownership vary by situation; consult a qualified CPA for tax advice. Contact a licensed loan officer for personalized guidance. Mo Abdel, NMLS #1426884, is licensed in California and Washington.