Pursuing my first redevelopment project and need some advice.

[Felix Wong]

TLDR: I am a noob who has a lot of stuff going on and need some info to not fall flat on my face.

Hello everyone, this is my first post. I am currently involved in property management. I am moving at rapid pace and have had to learn everything on my own and will need to keep learning in order to sustain growth.

I currently am working on my first rehab project it should be in service this year for rent. I have just been given shares to a series of commercial properties through my family and will be trying to spearhead some changes this year at a partners meeting to pick up performance in the portfolio. I am learning on the job and have big shoes to fill though no one expects anything of me.

While all of this is going on, I wanted to pursue a redevelopment project in NY but am headed in butt first as I have never done this before. 

Situation: My family has owned their home in NY for decades. It is mixed use, and sits in a very popular main avenue. They live in the 2 units above, and the retail downstairs has not been vacant for over a decade and generates over 70k a year in rental income. It does well, but not well enough vs where it can be. I am trying to get a redevelopment project started but we are cash strapped due to our other ventures. I feel this will set my parent's retirements up even more so and is important for me to accomplish this for them.

I have always had a vision and I would like for you to give me some advice to get it going. I have spoken with a premier architect and the final build will look like retail on basement, first level, and mezzanine. 2 residential apartments for the 2nd and 3rd level. Projected project cost is $650K. Projected NOI is 160K to 180K conservatively adjusting for a myriad of factors including lease up scheduling. Market in the area for retail and residential occupancy is insanely strong so I am not worried on that end. What I am worried about is finding financing. I am wondering if its possible to get 0% financing with such strong projections. The land and building currently is worth about $2.5M. My naive instinct tells me some decent bank somewhere will lend, but Chase and HSBC does not touch these types of redevelopments to my knowledge.

How would I go about financing this project? Anyone have experience in redevelopment projects can give me any insight? Is this even possible or should I just save up a bit before starting the project?

I feel like the added income, even after debt service, would totally outstrip the whole save until I can afford thing, at which point I would have lost hundreds of thousands on potential income. Any insight is greatly appreciated.