Navigating Renovations and Financing in Property Conversion

Exploring the challenges of renovating a property to meet city requirements and converting a commercial property to a lodging house with residential usage while balancing zoning regulations.

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

How many things can possibly go wrong with ONE rental property? Well, you’re about to find out! Today’s guest had to flex her problem-solving skills on multiple occasions to get her “unique” rental up and running, and in this episode, she’s going to show you how she pulled it off!

Welcome back to the Real Estate Rookie podcast! Investor Ashley Robinson bought a triplex in the little town of Salida, Colorado, with plans to live in one unit and rent out the other two. Despite her thoroughness during the due diligence phase, however, she ran into several problems along the way—from rental caps and building code issues to financing troubles and poor home appraisals. But Ashley persisted, creatively working through each hurdle until she was finally able to launch her cash-flowing rental property!

If you’ve ever hit a roadblock in your investing journey, this episode is for you! Ashley shares how she chose her investing market, changed her property’s use to sidestep rental caps, and got her building fully up to code. She also talks about the ins and outs of commercial loans—getting approved, coming up with large down payments, and refinancing when your property’s appraisal comes back low!

In This Episode We Cover:

How to convert a residential property to a commercial property

Zoning versus land use (and how they work together)

The biggest advantages of investing in a smaller market

Short-term rental caps explained (and how to work around them!)

How to get approved for your first commercial loan

Funding a LARGE down payment for a commercial property

And So Much More!

Links from the Show

Find an Agent

Find a Lender

Ashley's BiggerPockets Profile