Hello BP community,
I am a small multifamily investor seeking my next deal. I have my eyes on a duplex (unoccupied and updated) that is zoned residential/commercial. It also comes with an empty lot adjacent to the property. My initial though or strategy would be to buy, and build more units on that property (it still has plenty of space for additional units) and the lot adjacent to it.
The property is located in California and is 2 units (1bed/1bath) asking price is 370k. I could simply just buy and rent the units, OR build more units and make it a true commercial property. However, im wondering if there is any lender that could advise me on how to go about financing such project? Perhaps a comercial loan for the building and then construction loan separately? Can I do both in one?
I also welcome insights for Partnership structure on this project.
Many thanks in advance!
@Linzey Ledesma It is unlikely that a lender would lend more that a property is worth. A developer might be. Do you have experience in ground-up building? Find a partner that knows what you lack. Is a duplex with small units a good deal at $370K? What is the cost of developing the adjacent lot? Get some numbers and keep analyzing.