Real Estate Agent · Orlando, FL · Member since 2025 · 60 posts · 16 votes
I have duplex in a small city outside Gainesville Florida. It’s worth about $240k being a 3/1 and 1/1. Zoning allows me to put 2 more doors on. I want to build another duplex 2/2 each side. I have $60k equity in it that would use to secure a $40k bridge loan to start all the permitting and site work then get a construction loan to build out and refi out. Estimated Total value $560k at completion to refi out. Preference would be to use one company for everything. Is this financing process standard way to do this or is there a more fluid way to get this done?
I have duplex in a small city outside Gainesville Florida. It’s worth about $240k being a 3/1 and 1/1. Zoning allows me to put 2 more doors on. I want to build another duplex 2/2 each side. I have $60k equity in it that would use to secure a $40k bridge loan to start all the permitting and site work then get a construction loan to build out and refi out. Estimated Total value $560k at completion to refi out. Preference would be to use one company for everything. Is this financing process standard way to do this or is there a more fluid way to get this done?
@Floyd Johnson Sounds like an interesting infill project. If your goal is to hold the property long term, I'd compare whether a construction-to-permanent option is available versus using separate construction and refinance loans. I'd also make sure your projected completed value, construction budget, and lease-up assumptions all support the refinance before breaking ground. Best of luck with the project!
Real Estate Agent · Orlando, FL · Member since 2025 · 60 posts · 16 votes
2mo
@Eric James Hey Eric, thanks for the comment. I will give you more context to clear any oddities. The current duplex is an 1890s SFH converted into a 3/1 bottom and 1/1 top in 1994. Nothing was upgraded or renovated since the conversion before appraisal so yes that appraised for $240k. So a new construction 2/2 duplex would be of substantial more value yes.
Real Estate Agent · Orlando, FL · Member since 2025 · 60 posts · 16 votes
2mo
@Vijay Friedman Thank you for the comment Vijay. I guess in my head, the bridge to construction to perm was the same if it rolled into everything together at the end but I think I see what you are saying. A construction with fixed perm from beginning would be able to start the finance process to get going? And that would just be 10-20% on my part down for that construction loan or the land covers that part? I have an ADU build finishing up and want to reserve cash I have just in case that goes over.