Need help leveraging an inherited commercial property

[Jerry Pfeiffer]

My plan is to use the equity in the inherited commercial property to buy land and build my family’s dream home on the rent out my current home when finished making rental incomes from the commercial property and my current home I’m in now. Also maybe mortgage the new home to get back into house flipping.

[Ty Coutts]

Hey Jerry,

Sounds like you’ve got a really solid plan and I love how you're thinking a few moves ahead. Using equity from the inherited commercial property to build your dream home and turn your current one into a rental is a great way to create both lifestyle and long-term income.

Here’s how you could think about structuring it:

Tapping into the commercial property:

If there’s a lot of equity in the inherited property, a commercial cash-out refi could give you the funds to buy land and start the build. Just know that commercial loans work a little differently than residential—they look mostly at the income the property produces, not your personal income.

Some local banks or credit unions might even offer a HELOC on commercial property (less common, but worth exploring if flexibility matters to you).

Build the dream home:

For the new house, you’d likely go with a construction-to-perm loan. That means the lender covers the land purchase and build costs upfront, and once it’s finished, it rolls into a standard mortgage.

You’ll need a builder, plans, and a detailed budget, but since you’re planning to bring equity to the table, that helps a lot with qualifying.

Rent out current home:

Once you move into the new place, turning your current home into a rental is a smart move. It adds steady income and helps you hold onto a property that’ll likely appreciate over time.

If you haven’t already, you might look at refinancing that place into a fixed-rate loan to maximize your monthly cash flow.

Reuse Equity for Flipping:

Down the road, once your new home is built and has some equity, you could tap into that (via a HELOC or cash-out refi) to fund house flips. That way, you're recycling the equity you've built rather than dipping into savings or taking on expensive debt.

Final Thoughts:

You're essentially building a mini real estate ecosystem:

• Equity → Dream Home

• Dream Home → Flipping Capital

• Rentals → Cash Flow + Wealth Building

It’s a great strategy, just keep an eye on liquidity throughout the stages, especially during the build and any flip projects.

Happy to chat more if you want help sorting through the lending options or timing—it’s all doable, just takes a little planning to line up the right pieces.