Mixed-use Re-fi Questions in Phoebus (Hampton) VA

[Scott Sewell]

Hello (Virginia) BP Nation,

We need your help... Please.

Without getting to far into the weeds, We've recently purchased a little Mixed-use building in downtown Phoebus (Hampton) VA.

It’s a cute little wreck, and will need EVERYTHING, including infrastructure.

A complete gut job. It’s appx. 1600 sf with an 800 sf commercial unit downstairs and 2BR unit upstairs. (See below if I can figure out how to load some pics)
We know that many will (would) say; “tear it down and start new” but, we’d like to make that another discussion.
Our initial strategy is to BRRR it, and hopefully create some equity and cash flow on the back end. We've done this a few times now, but always in the commercial (5+ unit) residential market and this will be our first foray into the Mixed-use and/or straight out commercial market.
Now, I remember a conversation we had with my brother-in-law (a commercial banker in NY) when he told us these were the most difficult properties to get financing for, or were, at that time (this was some years ago). And yes, we will be consulting him too,
but we want your input...please.

So, for any of you having knowledge about these properties, or this process, our questions follow:

First, in your experience, is what my brother said as true today as it was some years ago? Or was that just a local trend at a specific time?

Next, what underwriting criteria do we need to watch out (or plan) for, or have the largest impact on a re-fi of this nature? (IE: deal make-or-breakers)

Finally, any input you have on this process? What would you advise us to do/not do, or plan for?

Thanks in advance, we very much appreciate the collective intellect!

Scott Sewell

Anchorage Rental LLC