4 Plex two story Rezoned property for three story higher density
We currently own a 2 story 4 plex out right no mortgage in a family Trust for last 40 years. 100 % occupancy with tenants of 20 and 15 years. Rents can always be raised! but recently I bought options on 3 additional 4 plex buildings on same street because city has now rezoned our property and whole Street to allow three Story. Its now possible to develop 6 to 9 units 3 story where each 4 plex 2 story is now. lot size is adequate and parking is good. We have developer experience from many years ago with Motels of 120 units each and a separate Skateboard park with Retail stores, so can easily design and navigate city Building laws for additional units. But hate to use mortgages from Banks ideally will use a Crowd funding platform to buy 1st 4 plex building of additional units then construction loans to build. I plan to do 5 units on existing structure leaving 4 units untouched and rented for next 10 years. My Question is should i look for one new mortgage of 10 or 15 years for 3,2 million covering a 4 properties project or should I finance all 4 separately at $800k. My current choices for design is to add one additional unit while 4 are currently still rented. Removing tenants and having zero cash flow with a tear down and built 6 or 9 units units seems too costly still. 5 rents would also make payoff of loan much quicker. With the adjoining Building it would make 10 units so cost of ADA compliance would be very little per unit and higher rents would result with ADA compliance. If I exercise options on other two buildings I can use same Building plan to create 20 units. Thoughts? This is in Southern California so costs are higher but so are rents.