It is possible to buy a former warehouse, or anything that has been down-zoned from commercial to residential, and turn it into your home or live-work space, but it won’t be easy and you will need a renovation loan or cash to do this.
Here is an example of a small warehouse that was downzoned to residential zoning.
There are still opportunities like this in the city but you have to have the financials to purchase the property and afford the renovations. There are a few types of renovation loans, but the most common one is the FHA 203K loan. The benefits are: you don’t need a big downpayment (3.5% is possible), and not only are you financing the purchase and renovation but also some of your carrying costs. That means you can keep your current apartment or home during renovations. As part of the 203K loan you get a facilitator who works like a general contractor, though there are some modest fees associated with this. The downsides are: the work can take a while, and you will also have to make sure the property is brought up to current code and occupancy standards. There are also repairs and upgrades that FHA requires whether you want to do them or not.
Please reach out to melissa@arthousechicago.com if you would like to learn more.
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