Mini Trailer Park to Sustainable Container Home Community. WWYD
I have an interesting property, with what I think is a solid game plan, but I'd love feedback, and I'd like to know what would you do.
Property is a 5 pad park with a duplex and one abandoned pad that will need work (repouring, water/sewer lines etc).
I own the property free and clear. Presently I have control over two out of the 5 existing trailers. My goal is to get a variance to put container homes on the pads and remove the trailers (all trailers are old and in poor condition). The location supports fairly high rents as it's about a mile north of Cornell University Vet School. All muni services. It's also in a redevelopment zone which may allow for a complete repurpose into apartments.
Right now I own it free and clear (purchased with an equity loan taken on another building). I need to refi by February 2019 for a loan cleanup.
What would you do?
My initial thought is to put enough debt on it to repay the equity loan. Which will allow it to cashflow a few hundred a month while I wait out the current owners (I expect I'll have control over all trailers within 2-4 years).
Then I'll keep on buying other deals and put this one on auto pilot until I can either redevelop it or flip it depending on the market. Or I could use the money to start the first two container homes and pay the current tenants more than the trailers are worth to get them out of there are proceed with the development now (while interest rates are still very low). If I could proceed sooner I would get a construction loan to complete the container home conversion, restore the abandoned lot and rerun water/sewer lines that are aging and hopefully have enough to repay the equity loan.
I'd love to know what others would do. Any Thoughts? Thanks in advance.
Kyle