All Forum Posts by: Maverick Shah

Hey all,

Looking for some advice or creative solutions from those who’ve been in similar shoes.

For my first project, I bought a mixed-use property in central MA about a year ago for $70K. It's on a small 2,500 sqft lot and currently has a commercial storefront on the first floor and one apartment that spans the second and third floors. The plan was to rebuild: keep the storefront on the first floor and add one 2-bedroom apartment each on floors 2 and 3.

Here’s where things went sideways:

• The property has been vacant for over 2 years, which means if I demolish the current structure, I lose my grandfathered zoning rights and will have to rebuild under the new code.
• After speaking with my structural engineer, the foundation is shot and can’t handle the load for a rehab — so the only feasible path is full demolition and new construction.
• Estimated rebuild cost is ~$650,000, and I’m already in for $70K on the land. So I’d be all in at $720,000, while comps suggest the new building would be worth only around $550,000.
• A bank won't finance the full project since the after-repair value (ARV) doesn't justify the cost. Best case, I'd have to bring $300K+ of my own cash, and I honestly think I’d be better off using that money on another property that actually cash flows from day one.

So that brings me to where I’m stuck:

1. Do I cut my losses and try to sell the lot/building as-is?
2. I would love to make this work but with the current plans of 1 store and 2 apartments, it looks difficult. What else can I do? What would you do?
3. Anyone else go through something similar — any lessons you can share?

This project has been a massive learning experience already — I’ll consider it an MBA if I walk away — but I want to make the smartest next step from here.

Appreciate any thoughts, connections, or ideas you all might have.