Mixed use or town houses on a 0.4 acre site in a fast growing commuter town?

[James W.]

First post here! We have this great plot of land which borders main street and another street on which we’re rehabbing a couple of homes. The town and area has great economic draw for new people. On our main street site we got this very beat up 1860’s home which would be a money pit to be rehabbed; c'est la vie- (that’s French for its getting demolished).

This little town is a satellite/commuter town for a larger town. My instincts say go for mixed use with a couple of stores on the bottom and apartments above. However, I am just not sure that even though it’s the top school district in the state, that this Main Street will gentrify quickly enough. 

We LOVE the idea of Pre Fab, as it’s potentially fast and predictable. But it might be that four, five or six three story town homes make better sense. 

Any BP’ers have experience with this type of situation?

If we go town houses, can we pour a large slab and add the pre fab homes in a modular way to recycle the cash?

All and any replies greatly appreciated.

Thanks

[Bryant Brislin]

Every submarket/micromarket is so unique, it's hard to know what your's can support when it comes to retail, and what it would be like to deal with those types of tenants, especially small business owners who may operate on a razor thin margin, like most food/coffee businesses do.  In general, from a business standpoint, the townhomes would be easier probably, but if you just have a passion for the idea of keeping the streetfront activated with a couple of shops, and it makes you happy without putting you in the hole, then do it.