I am in the planning stages of building a Basketball Gym
I am in the early stages of planning. I have scoped out a couple of commercial properties (0.42 acres for 119k, 0.71 acres for 199k, and 2.14 acres for 300k). I am trying to scope the cost for a warehouse for 1 full-court (6k sqft) or 3 full-court. 3 makes the most sense for my business plan but it means I need more space. Where should I start? Besides the land, I have priced out the flooring 11 per sqft, basketball hoops 5k per. I have about 31k that I can borrow from my 501k and another 15k cash on hand. I also own a house with my wife's 300k loan with the house being worth 384k. 

I mainly want to build this to help lower-income kids get into sports. My area has high league fees which keep kids out of basketball. I would help support the lower cost of league fees by having a year-round men's league and a monthly membership fee for an open gym.

It won't hurt my feeling if this dream of mine feels too far-fetched. I just want to know where to start and how much more i really need to save up.

Edit: You guys are great. Thank you for all of the suggestions. I did want to mention, the 2.14 acre lot is located right behind a Home Depot and Target and has great visibility from the busiest road in town.
[{"id": "gt3ldfe", "text": "Apologies if I don\u2019t comment directly on the numbers or the plan (getting late and I want to get a response to you). \n\nSounds like a noble endeavor and super well-intentioned. Also, sounds super risky to put your own dollar behind it. I would look into a 501c3 non-profit or some similar structure. 10k of your own money would be sufficient traction/proof to organize and perhaps get some corporate/local sponsorship on board. Maybe some CDBG grant money, too. \n\nA viable temp solution may be to work out renting existing court time, etc. just some quick, initial thoughts. Once an existing operation is up and running, you can think of ramping things up and getting some exclusive space. \n\nThat said, I would not put much of your own dollar (or your home) behind a for-profit court/gym operation if you have little experience doing it. My quick 2 cents. But good luck with whatever course of action you take.", "replies": [{"id": "gt3ngdo", "text": "To piggy back on this, if you think of a church that builds their own building, they start in a community center, then they rent from another church in the afternoons, to renting out a vacant church, to buying their own church, to one day building their ideal church.  Whether you go to church, I think you get my idea. \n\nHonestly, if you were gifted a building with three Courts, I think you would have a hard time just keeping the lights on with your capital. \n\nThat being said, to answer you question.   I suspect that I bank won't lend on much.  So, you will need 200k for the building (is that just land or does it come with a building), I suspect flooring will actually run you 100k to get the floor level, prepped, and then put the flooring down. I suspect you will need an AC/Heat system to keep the wood floor properly regulated, maybe 30k for that.  Plus, you will need things like office space, front desk, etc.  Let's say about $500,000. \n\nYou can't take anymore out on the line of credit on your house.  There is just no enough room there. If you pull money out of your 401(k), I think you will either have to pay taxes on it or repay it (or pay a penalty).  So, you will need another $485,000.  I just don't think a bank will want to lend on this.", "replies": [{"id": "gt5bbw8", "text": "I really like your idea about building this out slowly. In the end, that might be my only option because I do not have the funds to get this off the ground. My rough estimates that I have right now are 300k for land, 540K to build a 20k sqft warehouse from scratch, 80k for the flooring, 18K for the hoops. This estimate puts me at $938,000. Which would be way out of my range.", "replies": [], "depth": 3}], "depth": 2}, {"id": "gt5a2c3", "text": "Someone mentioned that if I charge a fee for the Men's leagues and a monthly fee to use the gym that I  would not be able to use the 501c3 non-profit structure. I am going to try and find a gym in town that is willing to partner up. I just don't like that I have to work around their schedule for making a kid's league. Beggars can't be choosers, I guess.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gt3ldym", "text": "Find a cheap warehouse and convert it. Heck have the kids play on concrete for the first bit. Sinking capital into this at this stage is crazy. Either that or find a philanthropist to fund it. I don\u2019t even think you mentioned how you plan to make money if your target is low income kids...", "replies": [{"id": "gt59qiq", "text": "I was planning on holding Men's leagues year-round. It would be $500 per team for about 8 to 10 games. I would also charge a monthly fee to use the gym every day of the week at about $20/month.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gt3ncgu", "text": "I would second avoiding sinking capital immediately if you can find a middle ground while working out the kinks/building the thing up. I get that the idea isn\u2019t to make a big profit here, but you also don\u2019t want to end up in life altering debt with an extremely specific and illiquid physical building.\n\nThat said, having worked previously with a company that painted basketball courts (and needed room for a full one), it\u2019s not easy to find space with that kind of clear span and height. \n\nSounds like a lovely idea though. If you can work it out, best of luck to you!\n\nEdit: I didn\u2019t actually answer your question. I think you would need more cash on hand right now to get the kind of loan you\u2019d need for this project.", "replies": [], "depth": 1}, {"id": "gt3o59l", "text": "Start with a million. That should get you part of the way there", "replies": [{"id": "gt5bq0u", "text": "After a rough estimate, you are not far off. I estimate about 938k to start this from scratch.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gt3xwtu", "text": "Where are you? I\u2019ll partner", "replies": [{"id": "gt5bg9z", "text": "I live in Central  California by Modesto.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gt4qrtd", "text": "I know a local fellow in my area, very successful, built a brand new building something like 8 years ago. 30+ foot tall ceilings. Spectacular place.  10 million ea$ily.\n\nLeases it to a guy who lets people play Badminton.\n\nBusy every single day.\n\nWhoda thunk it.\n\n*(Apparently there are people in this thread that aren't badminton fans).*", "replies": [], "depth": 1}, {"id": "gt4vxsi", "text": "For a multitude of reasons, you'd be better off starting a non-profit that just helps cover league fees for the kids.", "replies": [{"id": "gt5bme2", "text": "I think this would be a good way to get my feet wet. I just don't like the idea of having to raise money to pay the outrageous fees that the sports programs around me offer. That was the main reason for me wanting to start this.", "replies": [], "depth": 2}], "depth": 1}]