1st Timer Looking For Answers

[Ryan Lucia]

Hey everyone! Excited to have found this site and podcast! I'm in North Atlanta and I'm a business owner (2 years). I live in the subs and there is a historical city a few miles from me. I know a guy who lives there in a tiny little 900 - 1000 sq ft house. The house is in poor condition needing new flooring, walls, insulation, windows, roof, ac installed (currently has no a/c), and landscaping. I'm friends with the city mayor and have been in meetings about the plans for development in the area. This lot is a great lot! I've got the workers to fix the house up (i'm in the home service business). I have excellent credit but since starting my business I don't have much savings and I make a fraction of what I used to make in software. 

This entire project will be under $100k. My plan is to turn it into a commercial building and rent out as an office being that it is on a main street with tons of traffic. I know they have a historic preservation commission and their are things to consider on commercial like handicap parking, access to restroom etc.. 

As a first timer, I've accessed the situation and I think the best possible solution is go commercial and rent out office space. I could flip it but this area will increase as they build it out and this is one of the best lots in the historic district. 

Here's the catch. My banker says they will give me a personal line of credit with quick turn no doc but only for $25k. I have a mortgage currently with about $100k equity in it but don't feel pulling out of my personal home is the best solution.  Plus I can't get enough even if I wanted to. 

My thought was the take the credit line, use a hard money loan to buy the home and fix it up then refi to a commercial loan using the $25k as a down payment. Do they make you put 20% down on a refi for a business loan? Probably should figure that out! 

I'm kind of piecing this thing together to make it work but I'm very confident in the finished product. My wife is on board which is usually the voice of reason when I get excited. I have the laborers and can turn it pretty quick but I need help finding the best way to get the funds. 

What would ya'll do?

Any advice is appreciated.