Adding 5 units to my Quadplex in Waco

[Chris Brecheen]

I have a Quadplex (each is a 1/1) in Waco, TX. I’ve been running 31+ day rentals out of it for 18 months. Last year, it grossed $50.6K, despite one unit being rehabbed for 4 months due to a broken water heater.

I owe $240K on it and have 20 year mortgage. The property and the loan are under my LLC.

It is zoned for apartments and over 40 years ago it had another 5 unit building. I called the city and they said that I could build 5 more units.

I’m not exactly sure how to move forward. I know that building 5 more units would increase the value substantially & that it would increase the monthly revenue in total.

Are there lenders that do construction loans when the property already has a building? What should I assume costs would be to determine how to select a lender?

Do you have any suggestions on how to select a builder?