Mixed use long term development

[Tim Blanchard]

So we’re closing on a mixed use property in a couple of weeks and are super pumped to get things rolling!

It's a cash deal (using HELOC funds).

There’s a 2 bed 3 bath house that is in dire need of repairs so the first order of business is to get that rent-ready so our carrying costs are somewhat minimized.

There are two other buildings on this 1.5 acre lot. One is a store front space that used to be a marine supply store and the other is a workshop/garage.

We fully understand that it’s going to be at least a year before we can do anything with the commercial buildings but are planning on cleaning up the parking area in front to rent to a couple of food trucks daily.

The property is located less than a mile from the entrance to a very popular state park and the food trucks will be able to capture that traffic during the warmer months.

Ideally, one of the food truck operators will decide after a while to grow their business into an actual brick and mortar and we’ll strike up a mutually beneficial deal with them to lease the space.

There's no way to subdivide the property but I'm wondering if there's any shot of refinancing the house once we've done the rehab so as to pull some of that HELOC money out.

Another idea is to approach a local bank with the overall plan and see what kind of financing we could get for the entire development project.

Thoughts?