New to thinking about Warehouse/Retail DFW

[Bart H.]

My wife and I are looking at our first possible step into the commercial space in Dallas. Specifically we are looking at possibly buying a warehouse/retail building. We have some experience with SFH's and duplex properties but have not done anything outside of residential until now.

This property we are looking at has major roof issues that currently make it unsafe, but the rest of the structure looks like its in decent condition, I mean its an old brick building. I have a couple of quotes for repairs on the roof, and I have a sense for about what it might cost to do some other additional things, some we might do.

If fixed up I think the property would be a cool space that could be sub divided into 3 or 4 (or maybe even more) areas and rented to multiple tenants. It is in an up and coming neighborhood near where my wife and I have done some rehabs and rental purchases of SFH's. So part of our investment thesis is the continued growth of a neighborhood I know is on the upswing.

Obviously with the repairs needed, and the fact its not acceptable for occupancy, there is a major opportunity for forced appreciation, and the current rents would be all but impossible to use to do any calculation of returns.  Honestly I am surprised anyone is in the building.

So I have  a few questions. What kind of financing could or would be out there for these types of structures?  And are there any suggestions on who might finance something like this?  and what do those look like in terms of qualifying?  Who is most likely to offer those types of loans, standard terms etc.?

With smaller warehouses, do you find them fairly easy to rent?    Would we be better trying to create a few storefronts? is there demand for small warehouses, or small retail?

What would you consider the time it would take to find 3-4 tenants to lease the property?  Ie If we got the property, the price is low enough that my wife and I could personally cash flow the building until it was stable, but is that a 12 month time horizon?  or should we expect longer?

What other things should we be looking for?   or asking about? We are am working with a knowledgeable real estate agent, but I was interested in input from Bigger Pockets to get a fuller understanding of the challenges and opportunities.  What are the must haves?  What should we run from? 

I appreciate any input.