Downtown multistory property help needed

[Patrick Knapp]

Hey everyone,

I do a lot of residential real estate investing but have no experience in commercial real estate. I really want to buy a property in downtown Raleigh,NC that has 2-3 stories. I’d like to make the upstairs an awesome Airbnb and the lower unit into a restaurant or flex office space.

Has anyone here done something like this? Any advice?

Issues you dealt with?

Your opinion on the idea is ok also

[Rhonda Cohen]

Here are some initial thoughts..

For any particular building, you are going to want to reach out to the city about zoning, fire proofing, ADA compliant, sound proofing, parking, egress, previously permitted work etc..  

You are also going to want to figure what is the demand for space in the area.  Is it office space, restaurants, etc.?  Reach out to a local commercial realtor to figure out what is selling and what is not.

Different buildings will require different amounts of investments.   Some buildings will be better suited for different purposes.  From your post your motivation is not clear.

Local banks can be a great source for lending for commercial investments including rehab loans.  They also have specific assessors they use.  if you think you might be a competitive bid and need more info about the appraised value, you could get a partial appraisal early on to get a sense if the numbers work.  It is an out of pocket expense that could streamline your analysis.

Hope this is helpful.

Rhonda 

 

[Michael Porche]

Hey Patrick, this is something I have come across myself quite a few times but I never actually bought the property to perform. I think it's a great idea, what is bringing you to do so in Raleigh??

[Kurt West]

Patrick, I'm an architect based in Raleigh. I can give you a hand if you're interested.