Spotlight on transformation: remarkable building was once a Grocery Store!

Spotlight on transformation: remarkable building was once a Grocery Store!

Interested in a Transformation?

This former grocery store/butcher shop was completely gutted and rehabilitated to a multi-unit building with a 203K loan.

Example of a 203(k) Refinance and Renovation Loan

The borrowers purchased this multi-family home on Capitol Hill previously. Then the borrowers renovated the home using the FHA 203k loan. The owners did a complete gut rehab on the second unit of this property. This was a former grocery store/butcher shop renovated into a charming multi-family two-unit dwelling. You can see the transformation by glancing at the photos!

Other 203(k) Renovations

You might be interested in some of my previous 203(k) renovation posts:

Details of Monthly Payments

The borrowers could live in the first unit while the property was under construction. Therefore, they did not need to finance the monthly payments while this property was under renovation.

Grocery Store Before its Transformation

Grocery Store Before its Transformation

Living Conditions

The second unit of the property is a Carriage House. However, no one occupied it during construction. Therefore, the owners could live in the primary residence while under construction to keep their costs down. They did not need to finance the payments in the mortgage amount. The construction company completed all renovation on schedule and within budget. The construction budget represented the majority of the final loan amount.

Multi-Unit Renovations

HUD allows comparative rents be used to help qualify for mortgage payments on multi-family dwellings. However, borrowers need to meet reserve requirements to comply with HUD guidelines.

Closing Costs

The borrowers financed all of the closing costs into the final loan amount of this refinance, because of the equity position of the current financing.

Grocery Store, After Transformation

Grocery Store, After Transformation


The future value appraisal FAR exceeded the acquisition cost of the property. And the borrowers could obtain the property of their dreams with substantial saving to monthly payments. Also, the borrowers brought $0.00 cash to settlement. Furthermore, the property value increased because of the repairs, upgrades and modification completed. In this changing neighborhood, the borrowers would have spent substantially more to purchase a similar property if one could be located.


This location easily supported the renovation of this property. There was no deferred maintenance or property condition problem on this multi-family two-unit home after completion of the total renovation.

What do the Neighbors Say?

This was a huge upgrade for the beautification of this neighborhood. As a result, the neighbors are thrilled with the upgrade.

Rental Income

The rental income from the second unit easily supports the monthly payment of this property.

Final Outcome

The borrowers are thrilled beyond words with the renovation loan. Most of all, the location has perfect access to Capitol Hill. Also, the borrowers can easily rent the property. The borrowers are a husband and wife. Most noteworthy is that the wife could quit her job. She is now a stay-at-home mom because the second unit generates enough income. Hence, not only was the building renovated, but the renovation allowed this family to have their own transformation.

Have Questions?

Please call me with any questions you may have about your multi-family renovation project. I would love to help you with the transformation of your building!

I look forward to working with you.

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