Seeking Advice and Contractor Recommendations for a Fort Lauderdale Multifamily Conve

[Rosmery Then]

Hello everyone! I'm currently working on a project with a property I own in Fort Lauderdale. I'm looking to access some of the equity in the home to buy out my ex-partner, and my goal is to either convert the house into a multifamily property or add a dwelling unit (ADU).

I’d love to hear any advice from the community on the best way to approach this, particularly in terms of financing options, legal considerations, or any similar projects you've completed. Additionally, if there are any contractors in the Fort Lauderdale area who can provide an estimate or guidance on this type of conversion, I’d really appreciate the connection!

Looking forward to hearing from you and grateful for any insights you can share!

[Jamel Romans]

Hi Rosemery,

My name is Jamael Romans I am a multi family investor. Also a mortgage lender with United Mortgage Corp. I have done a fix and flip in Lauderhill FL before being that I am from south Florida. So I do have contractor recommendations if you still need.

As far as the financing part to do work. The advice I would give as a lender are these few options if you both are on mortgage. This will allow you to remove the person and do the financing on your own.

1. Home Equity Loan/Line of Credit: Since you're looking to access equity, a home equity loan or line of credit (HELOC) can be a good option. This allows you to borrow against your home's value. Similar to a credit card. What you use is what you have to pay back.
2. Cash-Out Refinance Cash-out refinance this gives you cash from the equity you have built up in your home. You would need atleast 20% to do so. Cash out refi gives you a new fixed rate loan for 30 year term.

Best,

Jamael Romans

United Mortgage Corp

[Matthew Paul]

Finding contractors in Florida after 2 hurricanes wont be easy or inexpensive 

[Jordan Ray]

@Rosmery Then PM me if you still need a few contractor recommendations. 

[Mike Klarman]

Do you own the property free and clear?

What is the current state?

Any existing debt?

How long ago did you buy?

You are in an uphill battle I am afraid if you have no experience. Converting properties to multi-family is considered extensive rehab and those programs are a little more exclusive than the standard bridge loan programs. Building an ADU is a nice way to add value but you won't get that funded by a lender. They'll want all the money spent on the main house, lenders kind of ignore ADUs it's weird. But these programs: Extensive rehab, Multi-family conversion, these are programs for the experienced investor. It would never be someones first foray into the financing world.

[Eyal I.]

@Rosmery Then

My partner and I are in the same situation, just he has 20 years of construction and development experience. We just acquired an existing duplex in Fort Lauderdale and planning on tearing it down and build a new duplex instead. The process is pretty straight forward and not complicated at all. I can share some of it with you and help guiding you through the process. 

First thing I'd look is the zoning for that property to ensure ADU/multifamily is even possible. You can also schedule a meeting with the building and planning dept in Fort Lauderdale. They are very nice and can be helpful providing you what you can and cannot build on your property (Set back, height restrictions, front look etc). A good designer and architect are key for a successful project like this and keep in mind these aren't cheap.

There's a lot more details to consider, feel free to DM me for more details. Would love to help!