Best use RC property: comm., short term rental, mixed?
This is my first post although I've been enjoying the discussions and learning. Hope this is in the right forum.
I purchased a rundown, duplexed 1850s house in a rough area of downtown Charleston for my small business offices about 10 yrs ago. To promote revitalization, the city rezoned the corridor limited business and promised a large sidewalk, etc. improvement project. The area is a HUD Renewal Community (RC). We got a CRD designation from the city and did a bunch of renovations/restorations mostly on the structure and exterior. Our use didn't warrant nice kitchens, baths and closets.
One appeal is a large lot - for downtown - that will allow another structure to be built. We have architect's drawings but didn't pursue it any further. Instead we sold the software company and our other Chs properties, bought a sailboat and took off for the next 6 yrs. The property was rented commercial for a few of those years and residential the others.
The neighborhood has improved alot, but the city hasn't started their improvements yet. I think the next 10yrs will bring a big change. The use is about 50:50 to 60:40 residential rental to neighborhood business (yoga studio, bakery, architect, etc.).
Our recent plan was to move into a unit, refinance as a primary residence and take out some equity. Then we'd make interior improvements and build behind. I'm realizing I don't really know best use for the property though. Any suggestions on where to start ?
The city recently passed a zoning overlay allowing short term rental. I think that would allow a larger structure and up to 9 units with less parking. My neighbor has two apts above a salon that she rents short term and speaks well of it. Also, a few properties down they're putting in a large wedding event venue - good for short term rental too. If I form a business entity that purchases and manages the property does that qualify as an RC business? Can I leverage my CRD for this?
One concern is that this would be a really big project for us. We've never built. Yes, we did make money buying properties in up and coming parts of town, fixing them up, renting them and selling them 3-7 yrs later, but that was late 90s through mid 00s. It would be like a day trader in a raging bull market thinking they know trading.
And I'm not sure I want to stay here, and we absolutely stunk as remote residential landlords - our rent is well below market and the place was damaged.
What else should I be considering? Thanks