Needing Advice on Commercial Project

[Melissa Odom]

Hi BP Community,

I have a small family-owned shopping center in Wimberley, Texas.  It is in a perfect location (off the square) in a very popular tourist town outside Austin, Texas.  The problem is the buildings are in major need of repair...and because of this, rents are one of the lowest in town.  Speaking to a contractor, just to remodel 3 of the 8 buildings could cost around $750,000.  To rebuild would not be all that much more due to the work that needs to be done.  The lot is 0.25 of an acre.  

Some thoughts that go through my head......

Who do you contact to get current values, after renovation values to see if this process is even worth it? How do you get accurate numbers to determine ROI? I have ideas of the values, but nothing based on anything concrete.

If I take out a construction loan, how do I pay for the construction loan during the process?  I won't see any rents or income until after the construction phase is completed.   

If we do a full rebuild, are retail shops the most profitable?  There is one upstairs apartment that can be turned into a str.  Should I add one or two more?  Or should I consider the possibility of adding in a small restaurant?  What gives you more bang for your buck?  Which ones will still deliver in a down market?  Or should I create a combination of all three?

As I start down one path, I have more questions which leads me down other paths with even more questions. 

Any advice is greatly appreciated.  I have 3 long term rentals, but this is my first time with commercial property.  The property is mine and my brother's inheritance so I am looking at it as a long term investment.  

Thanks for your time and help,

Melissa