Commercial Property Refinancing
My wife and I spent 3 years looking for the right deal. Through proper planning we were able to close on our first mixed use commercial property. The property is vacant and in need of renovations (all of which is accounted for through a construction budget). The property is a two story, 8,000 sqft building including a 1,500 sqft barn (which will be coming down). The seller also owns a multifamily property next door, which we worked into the deal to have a (2) two year first right to buy/offer option. This will provide 35 parking spaces once the house is demolished. The transaction was seller financed which reflects 3 points over prime and a monthly mortgage of $1,714. We secured the property by providing 20% down ($60,000) as the property cost was negotiated to $300,000. The current balance is $238,000. My question is, can we refinance the property with a bank for a traditional loan? If so, will that impact our application for a construction loan?