Mixed use hold

[Tim Blanchard]

Looks like our next deal is happening!

We're buying this unique piece of property that was at one time a popular retail location that sold marine/fishing gear. It's got a great foundation as well as a house on the other side of the property that we're looking to rehab and rent (long term) to carry the holding costs while we figure out what the heck to do with the commercial part. We're doing a cash deal for the property (HELOC money) but want to finance the rehab of the house (~$150k). We're confident that the ARV on the house alone is well above what we're paying for the whole property plus the rehab costs.
There are a ton of lenders out there with these “fix n flip” loan products but I’m apprehensive about engaging them since their terms seem pretty aggressive and we’re really looking to hold on to the property to cash in on the long term use of the space.

I would love to hear any suggestions on how to run the financing on this bad boy…

Initial purchase price - $160k (we've got HELOC funds for this but could go a different direction if it makes sense).

Rehab on house - $150k (realistically more like. $100-$120k but playing it safe).

ARV (on house alone) - $400k